RE:RE:Deal is getting done - May 24th update (direct link)What part of this deal “Stinks to High Heaven”?
Through this entire process there has been nothing preventing a Canadian company from making an offer for Long Run but none have.. The very small number of Canadian companies that have the resources to make acquisitions are circling like Vultures and cherry picking assets at fire sale prices.
Investment Canada puts restrictions on Foreign owners re Head Office locations, staffing etc. that don’t apply to Canadian owners.
If a Canadian company bought Long Run the Axe would be sharpened and used aggressively.
This Sinoenergy Group has a presence in Alberta and I am not aware of any issues.
You mentioned the Sino Forest fiasco. Non existent trees (proper DD was not done) were sold to Canadian Investors and the perps. skedaddled to avoid prosecution.
The Long Run assets are in Alberta and not going anywhere. Due to a lack of pipelines the Chinese purchasers can’t even smuggle their production out of the country….
If anything it’s up to the Chinese purchasers to do their DD to ensure that they are getting what they are paying for.
Here is a “News Flash” the Canadian Economy including the Energy / Resource Industries requires Foreign Investment. Our economy is based on producing and exporting resources! Like it or not it is what it is.
As I said if the deal closes the Share and Debenture holders will be paid in Cash exactly what they agreed to and don’t require protection from Investment Canada. The Credit Facility debt is by far the biggest part of the deal and is owed to a Banking Syndicate. They are more than capable of taking care of themselves and don’t require protection from Investment Canada.
Sinoenergy has a presence in Alberta and a track record as Foreign owners that can be assessed by Investment Canada.
As I said if anything “Stinks” about this deal it’s that to the best of my knowledge we were not aware that any Changchun Shareholders approvals were required.
I don’t have any evidence or inside info. to back it up but I suspect that there may have been some “foot dragging” by Sinoenergy that caused the delays in the review process. It would have been a bit “awkward” if had they received IC approval before the Changchun shareholder approval.
Now that “All The Ducks Are In A Row” things can move forward.
As for the financing in our world it is SOP to announce an acquisition c/w a “Bought Deal” to finance it.
The only difference between a “Bought Deal” and a “Private Placement” is that in a “Bought Deal” brokers commit to buying the shares and then flog them on to their customers. In a PP individuals commit to buying the shares. The end result is the same..
As Always; Do Your Own Due Diligence; It’s Your Money !! Scottie99 wrote: They didn't say the deal is getting done but as you can see below, they anticipate the deal to be closed by June following receipt of approval by Investment Canada. Something that is suppose to happen but has not happened because possibly Investment Canada has also come to the same conclusion that the deal stinks to high heaven and is not of beneficial interest to Canada!
2016 January 29 Long Run entered into an amending credit agreement with its bank syndicate which allowed Long Run and the Purchaser to move forward with the completion of the Arrangement February 29 Long Run Special Meeting held, shareholders and debentureholders voted to approve the Arrangement - On March 8, 2016, the escrow agent confirmed deposit of additional $10 million by Purchaser following receipt of shareholder approval
March 2 Approval of Arrangement by Court of Queen’s Bench of Alberta April 20 Approval of Arrangement under Competition Act (Canada)
May 20 Outside date of Arrangement extended to June 29, 2016
June Arrangement anticipated to close by the end of June following the receipt of approval under the Investment Canada Act