I believe this offer will be formal soon. It looks like Dingyi is quite serious about this takeover bid.
The due diligence phase has nearly finished. It will be over this week. Dingyi will now finalise the terms of the formal offer, it says on the announcement. ELM has given the extension for negotiating on the terms till end of this month. Then the offer will be formal.
ELM has one of the best potash resources in the world as I was saying from the first days of exploration. I am not sure if Dingyi would be able to takeover ELM by its formal offer without going through a bidding war as the 66c offer is very low for ELM's resources. The value of these resources should be arounf $400m at least which gives around $1.2 ps. I always believed that Chinese or South Americans (Brazil), or even some Europeans would realise ELM's huge and very valuable potash resources. Dingyi's formal offer might only be a trigger for more takeover attacks on ELM in the near future I guess.
Yes, of course I am in, was buying some over the last weeks. I am always in love with ELM (last 3 years)
K2P Price at posting:
42.0¢ Sentiment: Buy Disclosure: Held
