Thanks for pointing that out Malcolm as it’s much...

Thanks for pointing that out Malcolm as it’s much appreciated.

Leockl I think the difference with CGT is that it’s a conditional offer and they have to get at least 50.1% for their offer to succeed. Still it’s another all scrip offer, same MO I guess.

Given that it’s another scrip offer, LG might have to find away to keep the SP high and who knows maybe those SBL holders who accepted the offer will do ok when they receive their LG shares. Remember LG only issued 8.46% of their shares to acquire SBL, so I don’t think there will be that bigger impact on LG’s SP if people sell on the SGX. We should know soon enough.

This article is in this morning’s age and we learn a little more about LG …
http://www.theage.com.au/business/liongolds-eureka-moment-20120416-1x3pq.html?skin=text-only


I guess it makes sense as to why they may have moved the office from Perth to Melbourne a few weeks ago, given the CGT takeover.

As an SBL shareholder I just hope it doesn’t distract LG from the task at hand in Ghana. To me it looks like LG are about accumulation of assets and leases for now. However, at some point I’m sure they will be about consolidation and ultimate control and the SGX will encourage that. SBL was always a long term investment for me and nothing has changed from my perspective in that regard (although its taking longer than I thought).

I still think LG will leave SBL shareholders alone for awhile now and mop up what shares they can when they can. Don’t forget Tax Loss season isn’t that far away and with more uncertainty in Europe some people will continue to bail in the coming months. At this stage I intend to bunker down and let time do its thing and see what the new management can achieve. The only pressure to sell I would feel is if management totally botches SBL. For now LG our majority cornerstone investor has to make things work.