A couple of further points to consider for this land deal:1. The...

A couple of further points to consider for this land deal:

1. The land sale went to tender (secret bid). Assume more than one company submitted. Now, SSN selected what they thought to be the best deal, started final negotiations with the selected buyer, defined the deadline and had the contract drawn up. So it did not go exactly to plan for both the buyer and SSN. Meeting today, buyer says "sorry unfortunately we did not complete our DD, but we really want the land. Gives us another 4 weeks. To show our "good faith", here's US$10M.

So what does SSN do, sorry buddy you missed the dealine. We will now start talks with the next company in line that submitted an offer. OR - considering that SSN now have to start the whole process again with the next buyer in line and that will take at least another 4-8 weeks and possiblly no deposit.
OK, we accept the extension and the US$10M from the original buyer.


2. In the US, real estate deposits are usually held in an "escrow" account sometimes setup by the land title company until the sale is finalised.
So I am surprised that this was not mentioned in today's announcement. It reads that money will be deposited in SSNs account. To me this is not the norm of real estate sales.


Cheers,
SUDs