yes of course 50m is only 1.3% of the current register , so long road to takeover , but board seat is only 10% ; someone on your board may not have the same agenda as the balance of the board ; does all said within the office walls, remain within the office walls; there’s also conflict of voting power
Huayou first grabbed a board seat back in August 2017 when they took up 11.2% of the company. Mr Honglaing Chen then took a seat in the company ; could have been just typical hotcopper ‘here say’ at the time, but Mr Chen’s didn’t always make decisions as easy as the balance of the board would have liked .
then FIRB stepped in and Yibin basically had their board seat pulled by FIRB; they were to hold 12% of the company after their placement , but FIRB got into it and they needed to be reduced to 9% and so , no longer eligible to a board seat and placement went through on 14 May 2020.
Yibins placement knocked out Huayou’s board seat and then FIRB knocked Yibin out late on which resulted in no Chinese board seats …. At the time, many of us were spitting that FIRB blocked , but I think we can be thankful to FIRB now ; I reckon things would be a lot harder for the company trying to move through this mess with a potential mole at the board table.
If it’s for a board seat / strategic holding , then the Deelands 1.3% does create a nice filler for bridging the gap; it would only take another 50-100m thereafter for a top 3 top take them over 10% and into the board imo
What’s the purpose of German / Swiss registered shares only by Dealands ? Deelands reckon it’s for an Asian player ; is it possible to register a company outside FIRBs watch boundary under say a European registration ; transfer existing holdings into this new entity and come in that way to gain a position on the board .
Remember ; cash needs to be on hand and in the account before a takeover offer gains any sort of attention ; those are the rules ; the Deelands offer if true is not for a takeover ; if it’s true, it’s lubing up of a strategic holding imo
AVZ Price at posting:
78.0¢ Sentiment: Buy Disclosure: Held
(20min delay)