this is an extract from an article in todays Aust, regarding the Chinese desire for investment in the agric sector.
Given the advances of the "Proposed" bids from the Chinese for WCL, I was struck by the following comments which sound familiar:
"....The joint chief executive of Macquarie Agricultural Funds Management, Tim Hornibrook, said Chinese buyers were often making direct approaches “without necessarily understanding who they should be talking to, without necessarily understanding the assets that they might be interested in buying’’.
“You actually need to have an understanding of how we do business over here because I think if you look at instances of some large investors coming over here, people after a time have become tired of dealing with them because there’s a lot of take and no give,’’ Mr Hornibrook told the forum. “So at some point someone’s got to put up or move on.’’
However, Mr Ferguson said Chinese buyers were now recognising that they needed to take more time obtaining approvals and getting financing in place than they had in the past. “And most particularly sticking to the commercial terms of an agreed deal,’’ he said.
He said the Chinese were now keeping local management in place after previously parachuting executives into top roles...."
WCL Price at posting:
28.0¢ Sentiment: LT Buy Disclosure: Held
