Extract from SDL announcement on 10th January 2019
This may affect the timeframe for completion of the Agreement and AustSino’s proposedtransaction with private Chinese entity, Western Australian Port Rail Construction (Shanghai) Ltd(“WAPRC”). Sundance and AustSino will update the market as required.
Based on the above announcement on 10th January 2019, we could easily make a prediction whether ANS/WAPRC would be able to satisfy all acquisition deal conditions by 31 March 2019.
IF and IF China's NDRC approval depends on the extension of Mbalam convention as suggested by few people in this forum, the above announcement regarding the visit to Cameroon in late January 2019 indicates that it may be a further delay for the completion of the deal beyond 31 March 2019.
One of the conditions in the acquisition deal (see announcement) is to obtain SDL shareholders' approval before 31 March 2019.
If we follow the logic from few people in this forum, let us make a milestone.
As per the Australian Corporation law, shareholders' meeting should be announced at least one month prior to meeting. If ANS/WAPRC and SDL board will only travel to meet Cameroon Government Officials in late January 2019 and if everything does run smoothly, the Mbalam extension may be only granted in late Feb or March 2019 and then next step is to obtain the approval from China's NDRC.
Based on the above information, in particular today announcement, it is less likely that ANS/WAPRC would be able to satisfy the conditions of acquisition deal by 31 March 2019 unless China's NDRC approval does not depend on the Mbalam convention extension.
This is a simple fact. A logic person could easily comprehend the consequence of today announcement in regard to the Mbalam convention extension and whether the deal could be completed by 31 March 2019.
Big question: IF there would be a further delay beyond 31 March 2019, will noteholders extend it again?
