Ann: Sino Gas - Funding for PSC Projects Imminent, page-3

re: Ann: Sino Gas - Funding for PSC Projects ... A couple of points, the new entity holds 51% of SGE, which is a subsidiary of SEH, NOT SEH per se. As for further option to buy-out remaining shares (or a takeover), well if you mean SEH.ASX that is not possible without an EGM because the recent AGM had a motion voted on which didn't allow a takeover without board and shareholder approval. If you mean the new entity increasing their ownership of SGE, well hopefully the legal/finance documents wont allow this to happen without approval by the SEH shareholders.
As for board approval, it goes back to the SGE vs SEH entity situation. SEH doesn't have to allow a new board member, however, depending on the structure of SGE (which I'm not sure any of us know) the new entity may wish to have board members on this, or SEH may allow the new shareholders on the SEH board.

I'm not keen on the selling of 51% of SGE, however, the $100mill means there should be no need for further fund raising by the SEH shareholders. Remember it is in SEH and the new entities interests to get the revenue going ASAP.
SEH board have basically raised $100mill by halving our ownership of the billions of dollars of future revenue. If SEH didn't get significant funding very soon, ie approximately $30mill, the whole project would have fallen over. To get the $30mill via SPP or placement would have been near impossible or it would have very significantly diluted the shareholder's shares, and then more funding would have been required next year in an uncertain environment. (We may have been better or worse off). I think they have gone for the "Safe" option - the completely funded option, so the focus can go 100% on development.

I think this should be voted on by the SEH shareholders, and I think we will get a chance, but ultimately, we will have no choice but to vote for the proposal because there wont be any others put on the table and without funding very soon, that will be the end of SEH, or a placement will massively dilute our holdings anyway.

So in summary, not what I was expecting, but I trust the management are looking after our interests and hopefully theres as well. 25c was always my goal for SEH share price and this may still be achievable. My preferred option was a 15-20% sale of the project to cover this year's funding ($30mill) and then a mixture of bank finance and further sale of the project for next year's finance requirements.