I read the following between harvest break and I thought it was...

I read the following between harvest break and I thought it was interesting and well worth sharing it here. It now proves that, what someone has been saying for years, was correct to a "T"

I also know that it is about another company but the example is very useful indeed.

Enjoy it...


""Once that 15% threshold is crossed the Foreign Investment Review Board takes an interest in the situation, though it would not be at all surprising if someone in FIRB had recently opened a Santos file given what’s been happening.

However, it's understood that FIRB rules have now changed so that the 15% rule no longer applies, but is based on a monetary amount - a $1.094 billion threshold for "acquisitions in non-sensitive businesses" from FTA partner countries.

Even so, the spark for asking the foreign ownership question came when a Chinese private equity fund, Hony Capital, revealed that it has returned to the Santos share register for a second bite having previously been the owner of an 11.7% stake in the oil and gas company.

This time around Hony’s appetite was more modest, acquiring a 2.25% interest in Santos to give it a holding of 3.2%.

On its own that 3.2% does not constitute control in any way and might even be seen as a vote of confidence by Hony in Santos, a company which has been hit hard by the oil-price crash and exposure to one of the new coal-seam based LNG projects in Queensland.
  
But, it’s what happened to the original 11.7% which is particularly interesting because not long after acquiring that stake as part of a major recapitalisation by Santos Hony sold it to another Chinese company, ENN Group.

Technically, ENN and Hony are separate companies but anyone who believes that has no idea how Chinese companies actually behave, or how every company in China is ultimately controlled by that country’s government.""


So, while IMHO, it is clear that the Chinese are playing with our own Companies Laws and rules, to their own advantage.