I wouldn't be so sure about the spp, because sp has been 30% off since ann - which beats its stated objective. There is plenty of $ in the kitty at this point. Also, I can't see why Hunan and PMM would want to have their shareholding diluted, and they have enough voting power to prevent this.
I can see other possibilities: For example, it is possible that the management actually did not know the identity of Mr Yue and simply announced spp to ward off a hostile takeover. This is precisely what the directors told the shareholders at the AGM - an entirely plausible explanation.
Now that the hostile suitor happens to be a rogue trader, and the share price has retreated significantly, there is really no need for an spp.
The other explanation is that something very big is in the pipeline and Yue, being a sophisticated player, somehow heard about it - otherwise he could have kept accumulating at very cheap sp, rather than ramping up the sp - this would have saved hims a few million $.
I personally think it is this last option - one would only want to purchase $5m of shares on the market over two weeks if one was sure that it was necessary and important to do so immediately and expeditiously. If he had slowly accummulated, he could have bought 30% more shares for the same money.
Interesting times ahead of us...
GWR Price at posting:
73.0¢ Sentiment: Buy Disclosure: Held
