re: Ann: Completion of Due Diligence and Noti...
Nannook, I'd prefer any talking to be done in a public forum, preferably through company announcements, clarifications and supplementary notes. I'm not interested in cloak and dagger stuff. It's unfair on other holders and it doesn't help with the SP.
To this end I sought some information from KRL management about the deal with this email.
Dear Sirs,
Having read through the IER published last Friday along with the resolutions for shareholder approval at the General Meeting I have questions I require an answer to in order to make informed decisions.
How or what is ?Jedi Resources? and what is the precise nature of the payment of 380,000,000 shares to this entity as presented in Resolution 3 ?
Given the sheer size of this payment do you feel it is sufficient to describe to share holders the arrangement as ?Jedi was engaged by the Company to assist it with identifying, negotiating and settling the acquisition of a suitable coal project in Indonesia? ?
Again given the size of this payment would it not have been prudent to include the details or even existence of such a Corporate Services Agreement in announcements made to market ?
Is the company sufficiently aware of those behind Jedi Resources to be able to enforce the Voting Exclusion it has included with the resolution and would it be in a position to satisfy ASIC that this exclusion was enforced ?
Again given that the shares to be issued to ?Jedi? account for 11% of the total shares that will be on issue in the event of all resolutions passing and given the company?s previous propensity for placing large share allotments in escrow (including those to be issued to PT Bayan as part of the overall deal) is there a reason that this has not been done with the Jedi shares ?
Below is the company reply. Make of it what you will but it certainly does not address any of the questions I've asked. It might also look familiar as they seem to be sending this out as a stndard response to any questions regarding the deal.
Dear Sir Thanks for your interest in our Company.
A stated in the Notice of Meeting Jedi Resources has played a significant role as a consulting party in bringing to KRL the Pakar Coal Project and negotiating its acquisition from Bayan Resources, through to completion and final execution, including all associated due diligence.
KRL has consistently stated on all ASX announcements that the total shares to be issued for the Pakar Coal Project is 2,305,000,000 (2.305 billion shares). The allocation for these shares is split between PT Bayan Resources and Jedi Resources (1,925,000,000 and 380,000,000 respectively) as required by the parties which KRL has contracted with to acquire this project, but these shares should all be considered together as the total cost of this project. The Independent Expert Report that accompanied the Notice of Meeting considered all these shares as such in determining fair value.
KRL Price at posting:
14.0¢ Sentiment: None Disclosure: Held
