HIG 0.00% 10.5¢ highlands pacific limited

Looks like PNG Gov't tried to stop the sale to PNA according to...

  1. 734 Posts.
    Looks like PNG Gov't tried to stop the sale to PNA according to press reports - said to be because they wanted to try to purchase Glencore's 80% share themselves. Some suggestion that they may still try to interfere.

    "The Papua New Guinean government attempted to overturn the $125 million sale of Glencore Xstrata’s Frieda River coppermine to PanAust at the last minute, raising concerns the transaction may ultimately unravel, according to PNG sources.
    ...in the past few weeks it is understood PNG’s government had sent a string of letters to Glencore and minority stake holder Highlands Pacific, arguing the sale should not proceed..."

    "Local opposition to the deal has escalated in recent months since it was unveiled last year...
    It’s not clear what ramifications may flow from the PNG government’s late intervention although many are now concerned PanAust may face opposition to its application to develop Frieda River..."

    http://www.copyright link/p/busines..._stop_glencore_xstrata_yt8CLk6SrUvWqpQtcS1DWP

    Likely to be worked through though ok imo, as govt still have back-in rights, and according to the newspapers their financial capacity looks pretty stretched until LNG payments ramp up, and even then they have lots of infrastructure and social service demands on their budget. So I would think that they will eventually welcome a new participant who is willing to get some things happening.

    Maybe their concern was that the sale price was too low, and that they were missing an opportunity to get it at a good price. But if there were no other takers, and I imagine there was sufficient time for others to show interest, then the $125m is really what it is worth commercially.

    I still think HIG is good value, and will look to buy some more, but this does make the next little while a bit murky.

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