68c is my call... closest to the pip? , page-23

I have been thinking. Yes, that could be good or bad...lol. The question that kept popping up is 'how is the Chinese going to gain control of the company? How is this change of control going to come about?'

a. One or two or more big shareholders selling up?
b. Management team issue them with enough shares to gain control?

I believe the fact they are in deep discussion with management is that they need guarantee from management that they will gain control if they make the right offer that all parties are happy with. And they do this with issue of the necessary number of shares to the Chinese at whatever price to be decided on.

Also, why so important for them to gain control as a condition to making the offer? WHY? I can only think of ONE main reason. To prevent a bidding war. No point for any circling vultures to make any bid if they cannot get control at all. Right?

OK, based on above, and to gain management guarantee of issues of shares to ensure they gain control of the company, surely the Chinese must offer a fair and reasonable price as set by the management. Otherwise, how could management possibly support the Chinese takeover? Also, it will have to a be a no-nonsense offer as this would probably be a one-off offer with a guarantee of no bidding war.

So would 53 cents make a good enough one-off offer? Surely not as that would make a mockery out of management. So what price do you think the management would agree on such that they won't be made to look a fool yet also present value to the Chinese? For me, I would say a market cap of $1bn would do nicely. For the Chinese, it is a good discount as they do look long term. For us shareholders, I think most of us would be more than happy with the premium. Win/win for everyone. And Neal Froneman get to regain a bit of his respect after his past debacles too:P

In addition, would shareholders approval be required in order for management to issue the necessary number of shares to the Chinese in order for them to take control? If so, then surely all the more the offer must be good enough for shareholders to want to sell up to them so that they can buy enough from the market just to gain control. Otherwise, if shareholders are not happy with the offer, they won't sell and they would also vote down the share issue.

Above is just my rambling on a very slooowwww Friday. And I believe come Mon or Tues, my rambling would be blown to bits by the actual announcement...lol

Autosine, yes! 88 would do just fine :)