Hi, with thanks to GCA1960 for that link, I did read a related article on that site which IMO shows Hanlong are very well aware of their position in relation to "China Inc" & their pre emptive move on SDL & how they see themselves moving forward once they have control, (not my wish at this price ), what is slightly worrying is their confidence or from this article should I say overconfidence that this is a done deal. It would seem though that ownership of infrastructure is of great importance in this deal as 3rd party ownership can make projects very uncomfortable for Chinese companies you can take Sinosteels recent actions as an example of non ownership of port & rail infrastructure as a huge disadvantage in that project, that is one of the greatest strengths for SDL, the chance of Chinese owned infrastructure but also our achillies heel, it makes us a target at all costs, but not it would seem at any cost.This may well be a big miscalculation by Hanlong, China is not above making mistakes you only have to see their "Rio Tinto debacle to know that, yes they learn as we all should do from mistakes but that is harder when you are overconfident I believe. In business you are at your best when you play to your strengths & I know GJ & mngt are well aware of ours & will play to them for all SDL shareholders.
Kind Regards
Translated to English
Hanlon questioned denied that overseas income for the first time responses to funding constraints caused by mine Release Information: China Metallurgical Equipment Parts Network Time: 2011-07-22 Click: 153 To break the monopoly of the three major international mining giant in recent years, many Chinese enterprises have set foot on foreign investment in mining a difficult road. A week ago, the Chinese private enterprise listed in Australia O'Hanlon Group to make the company a wholly owned enterprise Sundance tender offer, if successful, means that the world's third largest undeveloped iron ore to the Chinese enterprises in the bag, which caused great concern to the industry . But in recent days around this question slowly crescendos from mergers and acquisitions, the Group Chairman Mr O'Hanlon yesterday for the first time open to the public responded. According to O'Hanlon Group mining company's acquisition program, its willing to take the total amount of about A $ 1.44 billion acquisition of Sundance wholly-owned company. Since in the M & A, O'Hanlon Group's most valued company is owned by Sundance in Cameroon, the world's third-largest undeveloped iron ore - Mubarak iron ore project. Statistics show that currently, Mubarak iron ore reserves of 2.8 billion tons of proven and potential resources over a hundred million tons, about 50 years for development. The project is expected to begin production in 2014, annual production of up to 50 million tons, ranking fifth in the world. Questioned the purchase price is too high for the first time responses For the acquisition, Mr Ambrose said: "The current Chinese Dragon Group is implementing the strategy of overseas iron ore target in 10 years to become the world's fourth largest iron ore supplier, participation in the international iron ore resource allocation, global competition for iron ore right to speak, effective checks and balances of the three major Chinese supplier of imported iron ore giant to resolve long-standing contradiction between iron ore supply and demand imbalance. "and many domestic analysts also predicted that if the acquisition is successful, will help cool the import of iron ore. But yesterday, issued a challenge, said foreign media and overseas mining companies because he recognized that China's enthusiasm for investment in mining, will raise the price, the acquisition of Sundance O'Hanlon also given the high price. "At the same time, taking into account China's recent emergence of the transaction cost overruns and other issues, there is no guarantee that foreign investment produces iron ore prices lower than international market price." In this regard, Ambrose response above is completely untrue. "Iron ore prices are determined by supply and demand, if we succeed in holding the next Mubarak to all iron ore iron ore project outputs will be sold to China, as each year will be a substantial increase in the domestic market supply, iron ore prices will naturally decline. The high purchase price claim has no basis in fact, there are still people think that we bid too low, and we carefully assessed that the current bid is reasonable.
Other investors may also be introduced next
It is reported that the acquisition of Sundance company, private enterprises in Sichuan have been mining two years O'Hanlon sixth international acquisitions, and is, therefore, the company has become the industry vanguard, but it was also generous to its acquisition at the raised concerns about capital adequacy. Ambrose insists the acquisition of Sundance's "not bad money." "There are many private companies who want to invest in this project, and our view is that as long as Sundance ultimately owned by the Chinese people have, O'Hanlon does not necessarily pursue hundred percent holding. Future acquisitions, if successful, we may introduce other investors . "Ambrose said. He also said that as the project is very good prospects, there are already many banks are willing to provide financing to the Chinese Dragon Mining, including the China Export-Import Bank in November 2010 for the Chinese Dragon Group provided $ 1.5 billion credit. In addition, Chinese Dragon Mining Managing Director Xiao Hui also presented than in the past, Mubarak iron ore project's greatest strength is to have exclusive rights to develop the infrastructure. "In the past, overseas investment of Chinese enterprises in the mining industry, most of the reasons for the failure is not controlled railways, ports and other infrastructure that, even if the mined iron ore, but the movement will not go out after, Sinosteel Midwest pause in Australia $ 2 billion iron ore project is for this reason. " Chinese Dragon Group also disclosed that the company has good assets Sundance, until now, have to face many competitors O'Hanlon, but the Chinese dragon will use its single largest shareholder of the company as Sundance's identity, check other companies bid. Sundance for the acquisition of the company when it can be granted, Xiao Hui told reporters: "There will soon be the result."
Site Editor: Feng Yingjie
SDL Price at posting:
52.2¢ Sentiment: Hold Disclosure: Held
