The no-shop in and of itself may have little impact, but in my view sends a helpful signal to the market that:
1. Both sides want to get a deal done 2. They’re now in serious discussions 3. Zijin sees a real likelihood that others are interested.
In other words, the no-shop sharpens everyone’s minds and increases the probability of a deal. If a handshake is not achieved in the extended time, XAM management has every incentive to re-invoke the 25% put option, reintroducing the leverage of XAM retaining a free carry in the project and shopping to other bidders.
Time will tell. Should be an interesting time ahead!
XAM Price at posting:
5.6¢ Sentiment: Buy Disclosure: Held
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