Gents.For those querying FIRB permission,remember CRE had that...

Gents.

For those querying FIRB permission,remember CRE had that for DB's 60%? interest and FML had Canadians at around 50%? as well.Both figures from memory.Note both companies needed rid of these cornerstone investors management input to start to develop successfully.

Maybe that is why THE TAKEOVER,is only STARTING at 51%.
Read it however you like,but that's what it is "A TAKEOVER".

Reporters visited Haier in China and that companies stated philosophy in its media presentation was -

"GET IN,STAY IN,TAKEOVER".

see the following link,especially after"buyout on small change"for enlightenment about promises/LOST IN TRANSLATION.

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10833160

Although they were later told it was but the companies media presentation and they had no interest in doing so to FISHER AND PAYKEL .One year later and that sentiment and direction/deliberate mis-translation correction,are all changed to that of the original media presentation.

Takeover of control of the company to one unified block holding 51%. One shareholder,not chinese bashing here believe me,you end up a bit like a shareholder in News Company? and put up with The Founders son,wife,cousins,or whoever,he decides to put wherever.OOPS and pay whatever he likes to himself and them,without shareholder challenge.

Also it takes only about 30% ownership of a company to EXERT CONTROL.This business is 35% ultimately owned by the SHANGDONG STATE GOVERNMENT.You only need 51% if the direction you plan to take the company,you know most others would dissent to.FOR THAT YOU NEED 51% OF THE VOTES FIRST UP.That also means that direction may very well not be in minority shareholders expected time frame of interest,but may be in someones interest with a 20-40yr time frame.With that time frame,you have a long time to pick up minority interests for chicken feed and maybe accentuate situations that allow that.
That's what creep provisions are for,to allow majority holders to slowly accumulate 3-5% a year on the cheap.No doubt Australia has them too.DYOR

$227m isn't for new plant,NOW,That's for sure,nor is it for organic growth,BUT GROWTH BY ACQUISITION.IMHO

FIRB approval may not be enough.Foreign State ownership/control of commercial property requires specific GOVT approval as it involves a loss of sovereignty,i understand.At what point does 35% of over half become 35% of the whole? SHANGDONG STATE GOVT WILL HAVE DIRECT CONTROL OF OVER 1500+ SQR KM of WESTERN AUSTRALIAN STATE TERRITORY and after more---SOON.One potential consolidation target owns near that much FREEHOLD,right next to Greenfields mill and FML's Greenfields pit.

Why NOW.Maybe something to do with other mining losing its boil,or FMG(iron ore) being potentially lined up by the Chinese as well.The sum offered,is it rather arbitrary,or is this but what is required for the next acquisition after legal costs,to grow FML's business?

FML should have just sold them Laverton for cash and walked away grinning.

UNLESS I SEE THE AGREEMENTS FOR THE NEXT ACQUISITION AS PART OF THIS DEAL,i can see me voting against it,even if FML lost money this QTR.Not even 1%,but as close as i can get,so far says STICK IT.
If not once the moneys in,i bet FML starts a share buyback ON MARKET within months of the dust settling to consolidate their new investment further.The argument being,it's an efficient use of currently surplus capital not immediately required and provides true value for shareholders.All true of course.
Consolidation of shares will flush out the day traders,the price will fall proportionally and the company will step in to rescue shareholders by buying shares a lot cheaper than an equivalent 5c a share.
Cripes,you could buy the lot and de-list and still have change left over as well as 100% of FML for only a 10% premium and collect the ounces and profits accumulated in the meantime for a years wait.

IS that the real plan,except no-ones told DT and BOARD YET.

REMEMBER ALSO the sum offered is HALF what BLUESCOPE STEEL were offered for Half their total ASIAN BUSINESS by NSC,in addition to NSC adding its interests,so is NOT SMALL.

DYOR+DYODD - COOLGARDIE area is up for major Consolidation. FML had 3% of one of its neighbors,only a few years ago.They won't be got as cheap as FML's being given away,or will they?I don't think so,maybe they are the smart ones and they haven't mined an ounce yet.