Ann: LoI for Cooperation on Strategic Investment, page-32

Correct me if I’m wrong, but ”inter-conditional” means the US$220m strategic investment is conditional on the acquisition of 100% Yancoal (US$290m registered capital) being agreed to first. Which adds to the complexity of the negotiations. By announcing the LoI, HFR’s value will rise, so it’s interesting Yankuang are happy to go public even if it means it will end up costing them more. And nothing is binding at this stage, so anyone else could come up with a better offer if they drag their heels. I don’t quite get if this all means HFR have to merge with Yancoal first without money changing hands? Obviously HFR don’t have US$290m to buy it. But it looks like HFR are getting a cash+asset deal worth US$220+290=US$510m or ~A$761m.