Lots of misinformation about takeovers etc here.1. Shenghe may...

Lots of misinformation about takeovers etc here.

1. Shenghe may have rights to talk to GGG about acquiring further shares (possibly up to 60% holding). This will NOT be by acquiring 60% of existing shares. It will be by getting further new shares issued by GGG in exchange for payment. This arrangement MUST receive shareholder approval before it could proceed. If GGG receives an unacceptable discount in issuing these shares it will be because WE shareholders agree to it.

2. There is NO provision for a "compulsory takeover" on going above a 20% shareholding. There IS a prohibition under the Australian Corporations Act about acquiring over 20% of a company with certain named exceptions. One of the exemptions is the acquisition of an additional 3% per year (the creep provisions). This could be either by onmarket purchases or new share issues by the company. The other main exemption is an acquisition approved by company resolution of shareholders (see 1. above). Of course the other way is by a takeover offer- but such an offer is NOT compulsory.

3. If there is a takeover bid the only way shareholders can be compelled to sell is if the bidder gains 90% of the company- then they can proceed to compulsory acquisition.

In all the above situations WE shareholders are in control. The only way shareholders can get below market value is IF THEY AGREE TO ACCEPT IT.