The other point I'd like to make is that on the 12th April 2013 when ELM first made an announcement declaring Dingyi's interest, the exchange rate was US1.069 to AUS$1. Now it is US$0.91 to AUS$1.
ELM has a strong African and North American shareholder base which means a large amount of ELM's shareholders paid US dollars for their shares. The ELM share register has seen a diminshing Australian base and an increasing South African & North American base due to the last placement and also net Australian selling.
The indicative offer price of 66 cents at the time of the first announcement was worth US71.62c per share on the 12th April 2013. However, that 66 cents offer is now only worth US60.06c. That is a 16.14% drop in value to foreign shareholders working with US dollars and will definitely increase the votes against a 66 cent offer price. I know for a fact that there are many disgruntled overseas large shareholders. This is of course good news for Australian investors though as it increases the likelihood of an increased offer imo. Dingyi could have easily changed the offer to 66 cents US and in doing so would have increased their chances significantly of getting the deal over the line but like I said they are just testing us out to start off with.
I'm holding tight. Make them work for it.
K2P Price at posting:
53.0¢ Sentiment: None Disclosure: Held
