Here's a scenario. Wanbao are impressed with the results of the PFS but willing to play the long game. They intimate they may be prepared to offer $150m, which is seriously short of HAV's thinking of $550m. HAV's technocrats, obsessed with geological and technical opportunities, think a revision of the PFS will convince Wanbao to bid higher. Wanbao, having done due diligence on HAV, knows the company's financial situation and figures that each passing month strengthens its hand. So it agrees, on the proviso the exclusivity period is extended accordingly. In 9 months' time, Wanbao offers $95m, which HAV tries to convince its shareholders is a good deal.
Here's another scenario. HAV is disappointed with the tentative offer of $150m and says to Wanbao 'you've got 30 days in which to make a serious offer'. If not, we're publishing the PFS and seeking expressions of interest from others, making known to the market that offers would need to be >$400m.
If HAV management had some serious business acumen, which would be the better option?
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