RadwimpsCXM's ASX announcement on Aug 28 states that Baotou is a...

Radwimps
CXM's ASX announcement on Aug 28 states that Baotou is a state owned enterprise, but a couple of recent announcements concerning WISCO that I just checked don't state that WISCO is an SOE, though yesterday's news report does.

The FIRB director outlined their approach to foreign investment recently.

My recollections of his position are that their preference is to limit foreign stakes in large established companies to 15% and to 49% for small companies. My understanding is that these percentages relate to control of the company.

In the case of CXM it may be ok for WISCO to take more than a 50% stake in a joint venture consisting of one of CXM's assets, since this would not by itself give WISCO control over CXM, since CXM is larger than one of its assets. OK WISCO is taking a large stake in CXM, but CXM has a number of tenements, some of which might, when developed, rival the size of WISCO's imminent investment in CXM. It is very much in CXM's interest to involve a number of major partners in its development and not to become too reliant on just WISCO.

I think there are reasonable prospects for ASIC to take an interest in the Baotou - WISCO combined percentage in CXM, rather than FIRB, since if they get 21% this is well within FIRB's preferred 49% limit, but breaches the 20% holding threshold at which a full bid must be made.