After reading the entitlement offer it seems to be beneficial for shareholders, as it would remove the large shareholding by Southern Gold and therefore make the shares more liquid. At the same time though, the benefit would only remain if the other two major shareholders were not able to increase their shareholding much above 20%. The company is undertaking quite a big exploration program at the moment and I for one would hate to miss out on any major find. I will be voting for the resolution and will take up the offer. Hopefully, all shareholders will do this as recomended by the company's chairman. If Talbot and CITIC want to take control of the company then they should make a T/O offer to shareholders rather than be able to buy up the shares not taken up in the entitlement. As stated this would be unfair to the other shareholders. SNU have some highly prospective temenents and I'm sure that these two companies would like to take control of them. What do others think ?
SNU Price at posting:
8.9¢ Sentiment: None Disclosure: Held
