china deal?, page-20

I don't see how this is a good outcome for shareholders. The offer is too low and triggers a tax event which will result in a deeply discounted cash box.

This offer is certainly good for the Chinese. I would be very happy if I was CHN mgmt/board as well. Mgmt can sit back for 3-5 years on a cash pile, take the salary, do a bit of exploration and evaluate some opportunities. Meanwhile shareholder value will steadily erode away.

The announcement is mute on any cash proceeds going to investors. It is unlikely a material amount will be returned to shareholders. This is the equivalent of completing an IPO without investors knowing how their cash will be used.

Let's hope a superior offer arises and any remaining exploration upside is considerable, because this offer is poor.