This looks like this is the final financing piece of the...

This looks like this is the final financing piece of the puzzle.

By my calculations, this announcement will bring total raisings (including planned raisings) to approx 1579.8m HKD as per the following;

28 June- $619.5m HKD (subject to shareholder approval)

20 June- $619.5m HKD net proceeds (subject to shareholder approval)

25 April - $140.9m HKD net proceeds (already raised)

17 Oct - $49.95m HKD net proceeds (already raised)

12 Oct - $149.95m HKD net proceeds (already raised)


At the current exchange rate (1 AUD/ 7 HKD), thats approx AUD $225m in the tin for Dingyi. Which is more or less the ELM takeover figure. I would imagine that they were assuming an average forex rate of between 7.5-8 HKD / AUD 1 (which would equal $200-$210m AUD) , but over the past few months the aussie has gone down further. This also gives them room to raise the takeover price to around 72c by my calcs.

Im thinking that the Shareholder General Meeting will be at the very latest shortly after the 19th July as the recent announcements suggest that agenda documents will be circulated then. See page 3:

"A circular containing, among other things, further details of the Subscription Agreement, a letter of recommendations from the Independent Board Committee, a letter of advice from the Independent Financial Adviser, and the notice convening the SGM, is expected to be despatched to the Shareholders on or before 19 July 2013"

...So could happen sooner.

Hopefully the market will now realise that this sucker is going ahead full steam.
The finance is fully funded, with the receipts from China African Development Fund (Hantang Resources) & now Li Kwong Yuk- the controlling shareholder of Dingyi (Wincon). Which I'd say is pretty safe. Both of these parties stand to make a significant amount of money for developing the project further given what we all know about it. They wouldn't be as deep into this proposal if they hadn't already found the funds for that convertible bond placements.