SP – 2.8c
Shares – 425m
Options – NQ
Cash – $10.7m (+ potential for $2.1m by 12/2013) see asterisk below
Major Shareholders
KWE(HK)Investment Development Co Limited 13.13
Qinghai Salt Lake Magnesium Industry Limited 13.04
Straits Mine Management Pty Limited 9.53
MGL has too many shares on issue for my criteria, but this may interest others. It has cash and a deal with Qinghai Salt Lake Industry Company Limited (QSLI) on the cards.
Background on Qinghai Salt Lake Industry Company Limited
QSLI is the parent company (89.4% shareholder) of QSLM. QSLI was founded in 1952 and listed on the Shenzhen stock exchange in 1997 (Code:000792.SZ). In December 2011 QSLI recorded annual revenues of RMB 6.78 billion (A$1.07bn) and Earnings Before Tax of RMB 3.35 billion (A$531m). The company employs 9,200 people and has a current market capitalisation of RMB49.6 billion (A$7.87bn)
Am unable to paste materials relevant to MGL’s announcement on June 21. Link below
http://www.asx.com.au/asxpdf/20120621/pdf/426yqgd3cc3058.pdf
**Magontec Limited (MGL) Signs Conditional Contract to Sell Its Interest in Joint Venture Entity Henan Keweier Alloy Materials Co., Limited (HNKWE)
The principal terms are as follows.
i. The buyer has agreed to acquire MGL’s interest for an amount equal to the lesser of $2,100,000 and the AUD equivalent of 45% of the net assets of HNKWE as at the date of payment of the purchase price.
ii. The purchase price is due to be paid on or before 31 December 2013.
iii. In the period to approval (by both PRC authorities and MGL shareholders) of disposal of MGL’s interest, MGL has ceded control of HNKWE to the prospective buyer and residual HNKWE shareholders. Should either of the aforementioned approvals not be forthcoming, MGL will reassume control.
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