FIRB or no FIRB the market sees a deal and doesn’t like it. I...

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EpicCopper

52 Posts.

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06/10/23

10:24

Post #: 70203791
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Originally posted by 1357.al.toh: ↑

Tell me sir, under which scenario would this be blocked? Get yourself some basic understanding about FIRB before spitting out irrelevant comments.

Sure everything is possible. The sun may not shine tomorrow.

FIRB approval is required for a range of acquisitions by foreign persons, including:

A "substantial interest" in an Australian entity: An acquisition of a direct or indirect interest of 20 percent or more in an Australian entity valued at more than AUD310 million (approximately US$216 million as of January 15, 2023)

A "direct interest" in a national security business: An acquisition of a direct interest of 10 percent or more in an Australian national security business (for example, a business that holds critical gas, water or port assets, a telecommunications carrier, or is involved in the supply chain for military and defense goods and services). There is no monetary threshold for these acquisitions

An interest in national security land (for example, a defense premises or land in which the Australian intelligence community has an interest). There is no monetary threshold for these acquisitions

Australian land and land-rich entities: Various acquisitions of interests in Australian land are regulated with varying monetary thresholds, including with respect to residential land, vacant commercial land, developed commercial land and an entity where the value of its interests in Australian land exceeds 50 percent of the value of its total assets.

https://www.whitecase.com/insight-our-thinking/foreign-direct-investment-reviews-2023-australia#:~:text=FIRB%20approval%20is%20required%20for,as%20of%20January%2015%2C%202023)

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FIRB or no FIRB the market sees a deal and doesn’t like it. I have the following investor DD comments …. but the fan club may not like it.

- strange funding source from apparently related Chinese parties
- the investors smell weakness and have driven a hard deal and if they run into FIRB / ASX issues who suffers?
- I am assuming they actually have the cash but can they remit it from China?
- in the rush to say these are not related parties, has management ignored the reputation risk and the risk of being embroiled in misrepresentation?
- if this is funding plan A I would not like to see plan B.

BC8 Price at posting: 19.5¢ Sentiment: Hold Disclosure: Held
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