RE:RE:Drop 1.12
actualy, 168m shares traded since Sept 3, 2013 when the deal was announced... which is around 89% of the register...
this deal should be going through
Yanchang has already filed for its onshore gov't approvals which consist of provincial level NDRC, MOFCOM (no anti-trust needed), and SASAC (provincial level)...
346.HK which is the HK listed subsidiary for Yanchang requires 3 votes:
1) 50% vote on the acquisition (parent who owns 30% can vote)
2) 50% vote on the CB (parent cannot vote)
3) 50% vote on whitewash waiver - to exempt making a mandatory GO from issuing the CB which will give Yanchang up to >50% ownership if exercised (parent cannot vote)
If you look at Yanchang parent's investment into 346.HK placement last Dec 2012, that placement also required independent shareholder vote at 346.HK
That vote went through as 100% of indepedents at 346.HK voted in favor, as Yanchang parent injected cash into the HK shell to "actively search for acquisition of oil and gas assets which are already in production, and overseas oil and gas resource target"
hmmm Novus seems to tick the box for everything... cashflow positive, overseas, producing... check check check
Also they are keeping Novus mgmt on and using it as a platform to do more acquisitions in Canada afterward
Circulars in HK tend to get delayed often in more complicated structures... the circular for 346.HK was submitted already and should take 4 weeks
That means EGM at 346.HK in early to mid Dec, and deal closure by end of the year
Think you have a safe rate of return spread here, underpinned by strong strategic rationale + minimal optionality on a counterbid from a domestic energy company
I would stay long or look to add as sellers try to make noise