So, for those who have read this morning?s EXT ANN in detail,...

So, for those who have read this morning?s EXT ANN in detail, what will happen between now and 5pm on the 3rd of May 2011?

From the ANN:
(8) Irrevokable undertakings:
The KAH board shall a) recommend the offer to shareholders and (b) accept the offer in respect of their personal shares and options (about 7.3% of KAH) subject to no superior proposal representing a 5% or greater premium to the CGNPC offer

9 Pre-Conditions
9.1 PRC regulatory approvals etc
9.2 ASIC approvals re CH6, Sec655A
9.3 Australian FIRB approval (ie no objection)
9.4 PRC able to securing financing
9.5a Mining & exploration licences for Namibia remain in place
9.5b There shall be no merger, takeover or transaction in EXT whereby KAH's 42.79% interest is diluted and EXT not enter into any arrangement (eg JV with RIO???)

10.0 ASIC Releif:
- downstream offer to EXT holders of an equivalent value?

12.0 Implementation Agreement:
Break fees of 7.5M UK Pounds with conditions on both KAH and CGNPC (read the detailed ANN for specifics)

My synopsis:
1. The 5% condition is a very soft target ? in my view any further competing offer would exceed the 5% limit imposed by CGNPC
2. PRC regulatory approvals would be a given (a state owned Co would not be allowed to take this current step if this were not a given?)
3. ASIC and FIRB approvals in Australia?
a. We are not talking about a strategically important Australian company with large nos of employees
b. The resource is not based in Australia so no impact on Royalties
c. I presume these would get the tick?
4. Mining and exploration licences remaining in place?
a. I hardly see the Namibian Govt changing the conditions on this so long as the status quo remains regarding royalties, employment and present operating and development plans remain in place
5. Mergers etc of EXT which have material effect to dilute the KAH interest
a. Presume this can only happen via a capital raising or a raid on one or more of KAH top 10 holders?
b. Presume nothing else can change the KAH interest or does this condition go to RIO making a T/O offer for the non KAH held portion of EXT to gain the controlling interest?

I would welcome your thoughts and views on these issues.

Cheers

SR.

PS: As always DYOR ? these are my opinions only. For what it?s worth, I?m holding for the highest bidder and then saving some for the dividend stream. Bring it on I say!