In my view there are some unresolved matters that could implicate the ASX in misconduct.
As this thread topic title states this post is about the category B license that can only be acquired at time of commissioning the facility hence this post acquisition cost sought by the ASX at a pre-acquisition stage is an important issue glossed over here in this forum, but I may have missed something here. Do let me know.
@Scarpa@ozblue both non-holders here seem to have overlooked a key matter that stalls the acquisition process.
Any thoughts on what counts as a due diligence cost versus an acquisition cost, in particular where does the Category B license fall between the two cost phases?
If the Category B license for operating the facility is an acquisition or post-acquisition level cost, should the ASX be asking WFE to show the category B license during the due diligence cost phase and so before the Acquisition is realised?
Because AHIC and it’s subsidiary operating the plant did not have the category B license. WFE indicates all necessary licenses and permits are held by the JV it’s subsidiary is a part of. This suggests category B license was/is not necessary at the stage WFE is at, therefore why is ASX concerning itself by asking for the category B license?
Is it simply a case that ASX does not allow WFE to acquire the license as it’s not a Due diligence cost but a acquisition level cost and knows this and so asks about AHIC holding the license; which, WFE says it was not necessary for AHIC to hold as its in country subsidiary operated the facility, and it has not operated the facility being in care & maintenance since 2016. The license is a 2 year renewable license according to my online research which suggests any license B previously held is long expired.
So, from my current view, the ASX are NOT ethical in their conduct just reading announcements and making an educated guess that the category B license is not a due diligence cost thus not allowed by the ASX for WFE to purchase. The best WFE can do is apply for it, which appears to have been done.
And if it can be proven ASX has made impossible requests around a category B license then could shareholders take legal action?
I also see from this tangle, why WFE were waiting on the ASX for clarification on the acquisition to sign off on auditor reports.
Frankly, if my observations are accurate then I do not think ASX have acted ethically as it has no business asking for a category B license prior to acquisition, and they have applied threats of discretionary power to make WFE submit to someone’s will and none of you have been given the reasons for this.
What I can see however is one instance of the ASX asking the impossible because it makes it bureaucratically prohibitive to acquire the license.
Intelligent comments welcome.
I also notethat ASIC can also review the prospectus and if something is not right thenthat authority may act.
Why the ASXline is sole arbiter is very problematic.
