Ann: Recommended Takeover Offer for LNGL, page-268

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Foxdog

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03/03/20

11:32

Post #: 43276703
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Originally posted by evacuation: ↑

Hi Fox,

I've been trawling through the offer documentation to try and get my head around the different conditions and limitations. One of the things I have been looking into are any limitations on "business as usual", marketing, etc. which I remembered you raising in a post you made the other day. I think others may have discussed it as well.

The definition of "Competing Transaction" includes a part (c) that covers entering into, or completing, "any offtake agreement or arrangement(or similar agreement or arrangement) in relation to or in connection with any LNG exportterminal project of the Target or any Subsidiary of the Target other than the Vietnamofftake previously disclosed to the Bidder by the Target;"

Aside from possibly telling us that there are no other deals in play except the Vietnam MoU, which @MoneyBags1348 may justifiably ask who were on the other end of those phones that were ringing off the hook, that term is used in parts of the document that would appear to prevent the company from chasing other offtake deals, whether they be existing prospects or new prospects. The operative section of the document that I think implements this limitation is section 6.2, No Talk. I don't think any of section 6.3 provides an exemption to this particular aspect of the definition of "Competing Transaction". It does not prevent a party from approaching the company though, so I guess it's OK for the phone to start ringing off the hook. Section 6.3 covers approaches made to the company.

I welcome any interpretation of this that is contrary to mine.

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Thanks evac. If this is the case then our board have truly given up and are admitting failure. Our only hope now is someone out bids LNG9 to the point where LNG9 no longer wants to compete. Not highly likely in the current climate tho.

LNG Price at posting: 14.5¢ Sentiment: Sell Disclosure: Held
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