EXT

Chinese companies are notorious for underbidding. Seems no one has advised them how to take over a company successfully at first go. They must think they are shopping in the bazaar.

They are making a bid for Kalahari indirectly at 11% premium to market price on Friday. And Kalahari owns 42% of EXT. The Australian law requires a bid for EXT if anyone wants to buy Kalahari.

My prediction? The buying price will have to be higher. Who by? RIO. RIO has afford a higher price because it owns an adjacent uranium processing plant which is running out of ore to produce. Because it holds more than 10% or Kalahari and under 20% of EXT (I think), it will have a big say who owns what. EXT is one of my most successful investments but I could hardly top it up because it was rising and rising and rising since I bought the first parcel.