There are a few misleading posts about this new substantial shareholder so let's clear it up:
The 39,495,092 shares (13.69%) only represents voting rights Dingyi have gained as a result of letters of intent signed by Pala Investments and Ian Stalker. These LOI's can be found in Appendix B of today's announcement.
Item 2. of today's announcement states that they have voting rights of 39,495,092 shares.
Item 3. states that Dingyi is taken to hold a relevant interest pursuant to section 608 of the Corp Act by reason of the letters of intent attached as Annexure B. It does not say by on market purchase, off market purchase or placement.
Item 5 Consideration - It clearly shows that there is NO date of acquisition nor is there any consideration.
Dingyi DO NOT own any shares in ELM.
I refer you to Annexure B, Page 2 of Pala's & Ian Stalker's LOI. It states:
We reserve the rights to change our intention if the board receives an alternative offer for all of the issued share capital of the company which we believe represents an improvement over the price per share.... or is materially more favourable to company shareholders. Then on page 3 it states the beneficial owner of 37,620,092 shares is Pala.
The same thing is mentioned in Ian Stalker's LOI. He is the beneficial owner of 1,875,000 ELM shares.
There is no mention of Dingyi.
As taken from ELM's announcement on the 12th April 2013: The letter of intent expires upon the earlier of signing a mutually agreed pre-bid agreement or 11th May 2013, at which time the undertakings and statements of intent CEASE to bind the Supportive shareholders. As a result, the voting rights will immediately transfer back from Dingyi to the beneficial owners Pala & Stalker.
Please be careful as we may have or about to get some STALKERS on these threads with ulterior motives trying to create the impression that this offer will go through. Our CEO hasn't signed an LOI, nor has the Chairman and another Director and give some thought to the fact that Dingyi's market cap increased by $260 million dollars within 2 days of the proposed takeover offer.
We have a very valuable asset here folks, the premier and most outstanding star Potash Project in Africa and it is highly sort after.
The share price imo is clearly being capped and it is obvious why.
I am hoping that this bid flushes out and forces the hand of other potential bidders out there.....
K2P Price at posting:
46.0¢ Sentiment: None Disclosure: Held
