GREY:WFREF - Post by User
Comment by
BlueCollar51on May 24, 2016 10:49am
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Post# 24899325
RE:RE:It Aint Over Until Its Over
RE:RE:It Aint Over Until Its Overanyone wrote: Calgary Sinoenergy is the purchaser. ChangChun Sinoenergy has shareholder approval to buy 51% interest of Calgary Sinoenergy and the remaining 49% Calgary Sinoenergy is owned by a private investment company. This deal was arranged by the controlling shareholders of Changchun Sinoenergy, who owns part of private investment company too.
The private investment company will pay $200M upon closing and Changchun Sinoenergy will pay $100M upon closing. After closing, Changchun Sinoenergy will pay $100M by private placement and remaining $400 senior debt will be financed by Chinese banks. The money is there but not in Calgary Sinoenergy as Calgary Sinoenergy is a firewall in case something wrong went wrong badly.
We just need wait for approval from Investement Canada. The law firm repesenting the purchaser is NOT doing a good job in building a strong case for purchaser.
I think that you have summed it up nicely. I have ben trying for a while to get a handle on the Chinese Corporate structure for this deal. It hasn’t been easy. When you look a Reuters, Google Finance etc. they describe Changchun Sinoenergy as a Department Store Company…
Relying on the Reuters “News Flashes” for info and taking them at face value can very easily result in jumping to the wrong conclusions.
I suspect that not having Changchun Shareholder approval for the Transaction and PP has been the underlying reason for the Investment Canada delays.
Now that Shareholder approval has been received things can move forward.
As Always; Do Your Own Due Diligence; It’s Your Money !!