"The investments to be negotiated under the Revised Framework Agreement, are for the Korean Consortium to:
– facilitate a strategic investor to acquire 10% of ASMH shares for USD 125 million
– make an additional USD 105 million equity investment in ASM (which would be subject to shareholder approval)
– invest USD 50 million via a convertible bond for a 30% stake in KSMM (ASM's subsidiary that owns the Korean Metals Plant)"
Given ASM's current MC, there is absolutely no way the KCF will follow through with this on these terms. ASM is financially vulnerable, and needs the KCF way more than the KCF needs ASM. This gives the KCF a huge upper hand in future negotiations, if they don't just walk away altogether, that is.
ASM Price at posting:
$1.61 Sentiment: Sell Disclosure: Held
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