Looks like this relates to the way the $400 million dollar China Gas purchase of Furtune Oil's gas assets - should "trigger certain tag along rights", suggesting that Dart expected that their share in the Liulin stake should have also seen a matching offer - but for how much???
The valuation ( See Liulin thread ) is not specific, but could be of the order of $100 million as it is a material component of the entire transaction.
[Del44] Dart Litigation.. On 23 January 2013, the Company received correspondence from the solicitors of its joint venture partner in Fortune Liulin Gas (“FLG”), Dart Energy (FLG) Pte. Ltd (“Dart”), alleging that the Proposed Transaction would constitute a breach of the Company’s subsidiary, Fortune Green Energy Limited’s (“FGE”) and FGIH’s obligations under the joint venture agreement that governs the operation of FLG. FLG is a party to the Liulin Production Sharing Contract which is briefly described in Paragraph 3 of Part 4 of this document. The letter alleges that the Proposed Transaction would, amongst other things, trigger certain tag along rights available to Dart and, alternatively, a first right of refusal granted to Dart to acquire FGE’s 50 per cent. interest in FLG. As at the date of this document, no formal proceedings have been filed by Dart with respect to the allegations. The Directors, having taken formal legal advice, are considering their response to the above allegations. However, on the substance of such advice they intend vigorously to defend their position that no breach has or will occur as a result of the Proposed Transaction. The Directors are currently unable to quantify the potential damages that could arise from any such claim, however, the Directors do not believe that the above allegations will have a significant adverse effect on the Proposed Transaction or the Continuing Group. From the recent circular...page 39. Also....from interfax... http://www.interfax.cn/news/21490
DTE Price at posting:
13.1¢ Sentiment: Buy Disclosure: Held
