Long Run Explor Ltd Ord WFREF

RE:RE:RE:RE:RE:RE:RE:RISK / REWARD

[BlueCollar51]

wilwal wrote: Yes, they are subject to review in the PRC too, but the fact that this deal is so highly leveraged, it's not going to be a huge outflow of cash.  $175 million to start for the shareholders and deb holders, and perhaps $100 million later this year subject to change.  Besides, I think SinoEnergy is pretty well connected.

There is a “Credit Agreement Escrow Amount” of $100m that Sinoenergy is required to deposit to close the transaction with the Long Run Security holders. They will need abt. $275m cash in total to close the deal. What happens after that is between Sinoenergy and the Lenders.
 
I found this in the Information Circular. It appears that Sinoenergy has done everything possible re the PRC regulators.
 
“PRC Approvals
 
The Arrangement is conditional upon the receipt of the PRC Approvals, which are regulatory approvals and filings in the People's Republic of China that the Purchaser, Guarantor and their related parties are required to obtain or complete in order to consummate the transactions contemplated by the Arrangement Agreement.
 
The PRC Approvals comprise of the following the filings and receipt of approvals, where necessary: (i) the filings relating to and the approvals of the National Development and Reform Commission ("NDRC") and the Ministry of Commerce Qingdao Branch ("MOFCOMQD") with respect to the consummation of the Arrangement by the Purchaser, the Guarantor and their related parties; (ii) filings with the State Administration of Foreign Exchange ("SAFE"), including registrations necessary for the conversion of Chinese renminbi into U.S. dollars or Canadian dollars and the transfer of these resulting funds to Purchaser; and (iii) the approval of the China Securities Regulatory Commission ("CSRC Approval"), which approval will only be required if Parent Shareholder Approval is required, and which approval includes the related filings with the Shanghai Stock Exchange, where the Parent's shares are publically traded.
 
As of January 22, 2016, the Purchaser, Guarantor and their related parties have completed its applications and registrations with the NDRC and with MOFCOMQD and received the applicable approvals. The Purchaser, Guarantor and their related parties have also made certain applicable filings with SAFE and anticipate SAFE approval will be forthcoming. As at January 28, 2016, the Purchaser does not believe that Parent Shareholder Approval will be required, and as such, neither will CSRC Approval or the related filings with the Shanghai Stock Exchange be required.”
 
As Always; Do Your Own Due Diligence; It’s Your Money !!