Ivanhoe Mines Ltd T.IVN

RE:Chinese Companies own another 1.08% of the Company

[chintzy]

bloomfield18 wrote: Zijin is buying at $3.98, a substantial premium to the TSX. This demonstrates they'll take any opportunity to acquire more of the Company. I don't think there was much doubt China is going to develop these projects. The West is basically missing in action in Africa these days. Small error in the news release. It's 1.08% of the Company, not of his holdings. This is getting setup for a buyout somewhere down the road. Friedland still wants a better price to sell the remainder of his holdings. 1.08% isn't all that much. 

So the Chinese own about 500 million shares and there is about 700 million that they don't own. Think about 2023 when the lid comes off and the Chinese are free to have a go at the company. Obviously they will not have to shell out for the shares they already own (and surely Zijin and CITIC are essentially a single entity in all of this, their moves will be coordinated in advance in tandem and neither will go after the other's shares or impede the other in any way) so it will be 700 million shares that will be in play. 

A $10/share buyout would be a price tag of $7 billion CAD or just $5.25 billion USD. This seems a laughably cheap outlay to pay for %100 ownership of this company (they still share project ownership with DRC,RSA and Japan of course)

A $20/share buyout that Top is calling for would be $10.5 billion USD. This is getting up there but it's not astronomical, the Chinese can easily do it and relative to the value of the acquired assets it actually again seems kind of cheap.

I'll take $15 CAD or <$8 billion USD for a 3 year wait, be well set for life.