The deal sounds very complicated. And I didn't expect the 100% owner of the ENC project is Decent Resources HK which is part of ShangHai Decent Group. Therefore it is a related party transaction and if ENC is so good, why would Decent HK sell it? Also the price is 1.725B (including the 20% option which worth 0.46B) compared to NIC's entire Cap of only 3.45B. If NIC accquires 55% or 75%, it will also acquire its shareholders loan....
Yes it has the tax benefit... But does it worth so much? What is the size of ENC's shareholders loan? How much is the interest? Does NIC has enough cashflow to cover the interest repayment? I have not found answers in the Independent Expert Report... The report says there is no disadvantage of the deal, which sounds unbelievable...
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