This post will not waste your time of reading. Like or dislike, this is the reality that ANS holders in this forum must face. Wake up from your dream and start sending pressure to the ANS board so they can update investors regarding the status of China's NDRC approval. Why is it important? Let us take a look at the following hypothetical scenario. If there is no approval from China's NDRC office, the signed deal between ANS/WAPRC and SDL has no meaning. In other words, WAPRC can not take control in ANS therefore ANS also can not acquire major equity ownership in SDL. If the deal between ANS/WAPRC and SDL is cancelled, all ANS holders in this forum will cry out. Can you imagine what would happen to the ANS share price. SDL share price is more likely to remain solid because noteholders will convert the debt to shares and becoming the controlling shareholders in SDL, and find new credible investors.
REALITY CHECK: It looks like that WAPRC is still not able to obtain the approval from Chinese government i.e., NDRC Shanghai to invest $100 million in ANS. WHY? In the ANS announcement, it states that the approval from China's NDRC will take around 4 to 6 weeks from end of Sep 2018. Up to now, it has been more than 10 weeks and there is still no news regarding the NDRC approval.
Extract from ANS and SDL regarding the NDRC approval (see BOLD statement).
Further information about the process and indicative timingfor WAPRC to obtain the relevant Chinese regulatory approvals and to remit theproposed A$100 Million in placement funds from China to Australia, is set outin Schedule 6 of this Announcement.
AustSino understands that WAPRC has prepared, but has notyet formally lodged, its application with the Shanghai office of China’sNational Development and Reform Commission (NDRC). AustSino understands thatWAPRC will formally lodge its completed application for ODI approval on receiptof confirmation that Wafin Ltd has signed the Sundance Agreement and when ithas finalised its proposed investment structure to make the investment. WAPRC anticipates formally lodging its completed ODI application around the end of September 2018 and that its ODI application will take approximately 4-6 weeks to be considered.
AustSino also understands that the process for obtaining ODIapproval is a relatively rigorous and comprehensive process (pursuant to whichthe identity of the investor, the source of the proposed investment funds andthe merits of the proposed investment are carefully assessed) and that if/ when a Chinese outbound investor has been granted ODI approval, the process for remitting funds out of PRC to make the investment is a relatively streamlined and orderly process.
The completion of both the Proposed WAPRC Transaction and the Proposed Sundance Transaction are conditional on the remittance of WAPRC’sproposed placement funds of $A100 Million from China to Australia.
