But I am imagining a situation where Fengli take all the undersubscribed shares, activates the mandatory repayment clause, converts all their bonds immediately and then convert the options acquired along the way. Sure they would need to announce a takeover, but they'd be a long way to their goal. On a tablet so can't figure out the hypothetical share they might own under such a scenario.
Another concerning scenario is where potential suitor continues a slow strangle strategy, converting options and selling on market to keep the price near 8 cents until the bank debt starts falling due next year. Then Fengli or another Chinese suitor might get it for cheaper than eight cents, especially if some other accidents were to occur during ramp up (e.g. black outs, industrial action over deaths).
Speculation of course, but starting to think we are falling for a carefully planned strategy.
A sale of WA assets after SPP would see another regulatory hurdle cleared for Chinese takeover.
GXY Price at posting:
7.8¢ Sentiment: Sell Disclosure: Held
