Personally I have no problem with the bid being put to shareholders. Sure it is on the low side, but the project has not been fully derisked. There are still plenty of hurdles and the proportions (many 50%) that analysts deduct in coming to their valuations are essentially arbitrary. We are now open for higher bids and shareholders can decide. If there are no other bids it suggests others think the risks are high. Personally I think (HOPE) there will be other interest.
Why are people selling below the bid price of 25 cps? The Chinese SOE have played hardball all the way through. The bid depends on the details of the ODP being agreed. If the Chinese want to try to buy the assets cheap they can delay finalising the ODP agreement and the deal falls over.
The debt problems of the parent of our partner are also a caution. We can finance our share, but can they?
The SOE could end up with full ownership if they play their cards right and there are quite likely to be further delays before production really ramps up.
On balance I am a hold in the hope of a higher bid, but the SOE could still to me cause some real problems. I wonder why Lone Star did not hold off a few weeks (?) until the details of the ODP were finalised.
My opinion only and I can understand why others are annoyed at the acceptance of a lowish bid. I have been a long term and large holder, but taking some profits off the table is always wise.
