Would a hostile takeover from these clowns get through FIRB?
Considering this forum ripped them apart in a day or two it wouldn't seem likely that any potential hostile takeover would be approved by the Australian government
So here's where it could get interesting. The process for FIRB is:
If the potential acquirer is a foreign person, or is controlled (20%+) by a foreign person (including a foreign government), it may need to obtain prior clearance from the Federal Treasurer, through the Foreign Investment Review Board (FIRB). The Treasurer has power to block acquisitions that are contrary to Australia’s national interest, and make disposal orders if the acquisition has happened (see under 3. "Foreign investment regulation" below). In making his decision the Treasurer and FIRB will consult with a range of other government agencies (including competition, taxation, defence and security agencies).
Nigel said at the AGM that the seat on the board was the crucial part of the Yibin Tianyi deal in 2020 that FIRB were against. If Deeland somehow gets over 50% of AVZ shareholders to support them they could spill the board. But the important question is would a new board be approved by FIRB when Deeland are obviously linked to a Chinese company like Zijin?
Especially seeing as giving a Chinese company a seat on the AVZ board was not allowed previously. This could be the reason Zijin are using Deeland which is headquartered in the UK as a surrogate but FIRB would see right through that imo
Deeland are claiming they want to take AVZ off the ASX so FIRB might not even care. The key thing is the deposit isn't in Australia. What FIRB were upset about with Yibin Tianyi was a Chinese government backed entity having a vote on the board of an ASX listed company. If that company isn't listed anymore because it has been bought out then there is no longer a direct concern about 'Australia’s national interest' for FIRB to consider imo
Here's my post on September 8th:
Zijin weren't crashing AVZ's share price to try and devalue AVZ's offer to Cominiere. They were deliberately crashing (through disinformation and imo share sales) the AVZ share price while using Mupande to delay the licence to make a hostile takeover cheaper. The ASX are aware of this and that is why they are happy to let AVZ drift on endlessly in suspension imo
From the AGM:
We knew Chinese would have a crack, but we did not expect parts of DRC government to be in on it?
A: Nor did we - “we thought it was gambit by Chinese groups to get project cheapest way. We weren’t aware it was also elements of the government complicit. We can’t go into it, but rest assured those people are being turned over within meetings with real information is being shared, and people put on the spot.
Collusion between all those 3 – namely Zijin, Jin Cheng, CAMI?
A: That would be astute thought
Interview NF mentioned once mentioned once decree issued 10 day period before Court could issue the licence. What happened?
A: This was a misunderstanding. As soon as your documentation was in order and issued, this talk of periods was regarding the ministerial decree. Other steps in way of ML – CAMI have held up the invoicing, illegally in our view.
Key words 'gambit by Chinese groups to get project cheapest way' imo
I remember someone from the German roadshows in April saying that Nigel told them a takeover offer had been made in the past few months but that the board didn't consider it serious. That offer was definitely from Zijin imo. When they got told no by AVZ they proceeded with their backup plan.
Think about the timing of when Zijin began spruiking that they 'bought' the 15% of Dathcom from Cominiere. That alleged event occurred in September 2021 but they didn't start making noise about it until around the time that AVZ got the ministerial decree in May 2022.
If they had moved earlier it may have put the granting of the licence to Dathcom at risk. Now Dathcom legally have the PE all Zijin would need to do if they buy out AVZ is get Mupande to finally calculate the surface rights and register the licence. A process which is meant to have a max of 5 days to happen in the DRC mining code but we have been waiting almost 8 months so far to be completed.
If Zijin are successful in launching a hostile takeover of AVZ they could also drop AVZ's defence against them at the ICC and pay off Cong to legally own 90% of Dathcom. They have no chance of winning at the ICC so I can't see any other reason they haven't officially dropped out yet.
Zijin have made no secret about their plans of moving into the battery value chain. They have the experience in mining and the money to build battery plants but like everyone else they don't have a secure supply of lithium. What better way of securing their goal of whole of supply chain control in renewables than by taking the best resource on earth from under the current market leader CATL's nose. Zijin are determined to get control of Manono whatever the cost.
At the alleged offer price of $1.53 AVZ would be valued at around $5.3b AUD. Add in another $200m for Cominiere, Dathomir and snacks for some DRC officials and Zijin would have it all. Zijin buying 90% of Dathcom for around $5.5b AUD before the mine is even touched would be the acquisition of the century imo
Maybe I've had too many pineapple infused eggnogs for Christmas and am just talking nonsense. Perhaps I would be thinking differently if I was drinking champagne.