Hardest part , as i see it now, is how much does ZFX value the holding of Jinchuan in the larger picture. I'm sure Jinchuan believe that their 10.9% holding in the "original" form of AGM gave them some leverage.(due to the support given with funding, close ties to THR etc).
Now that leverage is harder to realise with the upcoming merger of zfx/oxr.The small holding does't really give them anthing to bargin with.ZFX stated somewhere, in my fading memory, they could live with a minority shareholder? However IMO it does give them a good chance to negotiate "first rights/prefered buyer staus" in some of the minerals the larger group would have to offer.(Post merger)
Also as for share price appreciation after production it "could" become harder to sell a parcel when the bid officially closes.(note: never seen a situation where so few shares could be left to trade with >1 mill if calculations correct)
Still it probably/possibly/mabey would not hurt to hold on to see how it plays out while the bid is still alive.
Also for whats it is worth i'll take a punt at who is buying at 1.105. I'd say it is UBS/MQG. No one else whould have ANY reason to buy in the current market situation. As for their reasons in doing this "who knows?" Also Jinchuan would have jump through too many hoops to aquire v/small increase and no change in sub holding notice.
Daveo01
AGM Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
