RE:RE:RE:RE:RE:RE:RE:RE:Some pro-forma numbersHi Alain.....this definitely makes sense but some how I think there is more to this 3 way repationship.
It is clear that Banyan and Pkk got in touch through long key as pkk does not likely have these kind of connections or capability to market themselves in China. Here is my take on the story:
Banyan is not interested in investing in pkk only or in longkey only but in both. In other words for Banyan wants both or nothing. Here is the reason why. If Banyan wanted longkey only they don't need to buy shares in pkk to do that....they could have become shareholders of longkey directly by giving them 4mm. On the other haND no foreign investor would give 4mm to a shell company in Canada just for the exposure to north American capital markets. So banlan wants the longkey takeover as this is the only 'product' that pkk has to offer in fact I'm certain that banlan is offering g this deal to pkk conditional on the longkey takeover. If I were giving 4mm to peak I would want absolute assurance for them that the deal between pkk and longkey is 100% certain. This last statement has certain implications for us the current shareholders (other then the resulting dilution effect). It means that if the banlan deal goes through then the longkey takeover is absolutely guaranteed.
Let's take this speculation a bit further. Peak does not have the capability to take on the banlan IT project while in the same time the service banlan requires sounds very much like what longkey is supposedly doing for ICBC. So the only thing that makes sense here is that longkey is going to be developing the platform for banlan and not peak.
And here is another point to think about. If peak is going to get 10% of banlan revenues and mr.Jiatao owns 50% of peak then he is essentially diverting 5% of banlan earnings to himself through peak and possibly via longkey. It ties in with Alain's point about the dividends.
Anyways, please keep in mind that all of the above are just speculations and I have nothing to support any of these point with other then trying to put all pieces in most logical way