LYC 2.89% $5.69 lynas rare earths limited

LYC ceases negotiations with Nomura

  1. 8,880 Posts.
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    Firstly can I congratulate everyone on a reasonable discussion today without too many moderated posts. We have many differing views, but generally the debate was within limits!

    Now the ANN today. It has been suggested by some that this was LYC giving Nomura the flick as there is a better option in the wings.

    I'd like to dissect this is little.

    Assertion - LYC probably knew that the ANN would cause SH a lot of emotional pain and hit the SP. This may be arguable, but I don't see how LYC could not have suspected this.

    Question - if LYC had a choice as to when to stop negotiations and had other deals in the pipeline, why would they choose to make the ANN today? Appears perverse to me.

    Assertion - Nomura walked away and told LYC there could be no deal. LYC, under ASIC regulations would have to notify the market ASAP. In this event they would have had zero choice - their hand was forced.

    I've thought about this a lot today and frankly I just don't accept that LYC decided to walk away and make the ANN without first finalising the deal with other parties. Why would they do this????

    IMO, just more LYC Bull Dust, trying to put lipstick on a sows ear. If it was a deliberate choice then I fear this was a softening up drama for a major dilution within the next week or so.
    ---------------------------------------------------------------------------------------------------
    Lynas Corporation Limited (“Lynas”) (ASX:LYC, OTC:LYSDY) has decided to cease negotiations
    with Nomura regarding a novation and amendment of Lynas’ existing senior debt facility. Instead,
    Lynas remains engaged with existing and potential financiers and investors regarding:
    (1) a restructure of its existing debt facilities;
    (2) potential additional facilities; and
    (3) other investment opportunities.
    Each of those alternatives will require the consent of the existing senior financier, with whom Lynas
    continues to be engaged in constructive discussions.
 
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