" Unlike CGNPC, Rio will have no trouble getting the takeover relief from ASIC. "
IMHO, generally relief from having to make a full takeover would only be granted by ASIC if the increase above the 20% thresh hold was only a by product of a takeover.
Rio already has 14.5% of EXT and if it took over KAH it would give them a controlling interest of over 55%.
As the only asset KAH really has is its 43% stake in EXT, apart from some cash and its stake in NRRP, it would be almost impossible for Rio to argue that it was making a takeover of KAH for any other reason that to gain control of EXT.
ISTM that an increase over 20% of Rio's stake in EXT by a takeover over of KAH is not a by produce of the takeover, it is the only reason!
In this case I very much doubt that ASIC would grant Rio relief from the 20% rule.
If this was not the case I'm sure Rio would taken over KAH already by now.
Regards
Steve
EXT Price at posting:
$10.57 Sentiment: LT Buy Disclosure: Held
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