Carlos Danger
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Clearly it is a question of control and influence on decision making rather than just minority ownership. Perhaps management are confident enough that they won't go below 51% that FIRB didn't need to be involved. Then again they have been confident of getting the licence on a fair few occasions so far.Thanks for sharing!!
The TIA ( Cath ) transaction is incomplete still, so not a matter for the FIRB to consider at this stage is my view on that
Yibin was looking for a direct stake in AVZ, required FIRB approval, got dismissed on " contrary to national interest " as per
Foreign Acquisitions & Takeovers regulation 2015
Interesting to note way back in 2019 , when Frydenberg rejected YIBIN proposal, his reasoning were pretty clear and powerful...
" AVZ business is centred on mining lithium, identified as a critical mineral, the largest demonstrated hard rock deposit in the world, with potential to produce 300,000 tonne PA, equal to world output of 2018 alone. The Australian govt is committed to growing its critical minerals sector and to DIVERSIFYING GLOBAL SUPPLY CHAINS "
So the Australian govt knew all about AVZ potential back in 2019 when it was a pimple compared to now , do you or anyone else in the brain trust here at TSE think a potential " loop hole " in selling via DATHCOM is going to deter matters regards to the FIRB aka Chyna ?
Here is the link to the guidance of Foreign Acquisitions & Takeover regulations 2015 for everyones perusal , sections 56 and 67 all included, make of it as you will.
FOREIGN ACQUISITIONS AND TAKEOVERS REGULATION 2015
classic.austlii.edu.au
Here is the latest link for US critical mineral pact with Australia and other alliances
Australia-United States Climate, Critical Minerals and Clean Energy Transformation Compact
Australia and the United States commit to enhance bilateral cooperation under a Climate, Critical Minerals and Clean Energy Transformation Compact (the Compact), establishing climate and clean energy as a central pillar of the Australia-United States Alliance. Australia and the United States...www.pm.gov.au
AVZ contacted the Australian embassy about this shit show , no doubt the US embassy was made aware too, hence ISCID.
Just reading between the lines here, if any take over of AVZ / Dathcom is going to occur with FIRB blessing , the logical suitor is going to be the gringos aka US and possibly our best bet for a decent price.
Interesting times ahead.
just my opinion.
The Yibin deal was altered after FIRB rejected the initial terms in April 2020 from them buying 11.7% of AVZ and crucially getting a seat on the bod to them buying 9% and not getting a bod seat.
Frydenberg's main concern was the deal was not in Australia's national interest of 'diversifying secure, resilient and sustainable global supply chains' for critical minerals. Which is code for China is asshole. The Yibin deal would have been approved before the Wuhan lab kerfuffle imo
My main point was centred on the hypothetical scenario where AVZ wants to sell all of their holdings in Dathcom and leave operations in the DRC. That's a completely different thing for FIRB to consider than an ASX listed company that wants to continue to operate in a foreign jurisdiction but could potentially be subject to sinister influence by a rival foreign government.
Nigel mentioned that takeover offers had been received at the German roadshow in April 2022 but they weren't worthy to announce to shareholders. I can't imagine at that time they were from anyone but a Chinese entity. Surely that means management think they can sell to the Chinese if needed. That was Klaus's plan before bailing too so it must be possible.
Yeah on paper the gringos are the ideal buyers if we need to sell. But this is now all down to Felix wanting battery plants in the DRC and the law means fucking nothing. And that sort of attitude means the gringos won't touch it. All of the recent rumblings point to CATL agreeing to build the plants. Which points to AVZ either getting the licence or them buying us out completely at a price the bod is happy with. If it's the latter and FIRB try to stop it then the DRC government will just take the tenement off us and we will spend years in court thanks to our own government imo
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