If NMDC can own more than 50% of LCY after 5 years, what's to stop them stalling instead of doing anything material like develop a resource or go into production, then in 5 years just buying out LCY completely?
I don't see any reason why they want to slow down any development and bring any project into production as it doesn't benefit them at all.
for them (NMDC) to acquire the other 50% of LCY after five years it would have to go through FIRB approval again, and also the LCY shareholders have to vote for it (NMDC's vote shouldn't count, imo)therefore it would not be the same as what they paid for their current 50% of LCY shares, it would be at premium to the s/p in 5 years time.
If NMDC can own more than 50% of LCY after 5 years, what's to stop them stalling instead of doing anything material like develop a resource or go into production, then in 5 years just buying out LCY completely?
ReplyDeleteI don't see any reason why they want to slow down any development and bring any project into production as it doesn't benefit them at all.
ReplyDeletefor them (NMDC) to acquire the other 50% of LCY after five years it would have to go through FIRB approval again, and also the LCY shareholders have to vote for it (NMDC's vote shouldn't count, imo)therefore it would not be the same as what they paid for their current 50% of LCY shares, it would be at premium to the s/p in 5 years time.