Mongolian Government Pushes for 50% stake in Oyu Tolgoi
The Mongolian government decided in a parliamentary meeting yesterday that it will try to increase
its stake in Oyu Tolgoi. According to the agreement signed between the State and Ivanhoe on October
6th, 2009, the state has the option to increase its stake until one year after the agreement or October
6th 2010. As that date has passed, the only way for the state to do so is to either nullify the previous
agreement or come to terms on a new accord. Either way, the state would have to buy-in, and raising
funds could cause a delay.
Regulation for Complex Investment Products Set
The Financial Regulatory Commission has issued regulation on structuring asset-backed securities.
The law initiating the project was passed last year, but bureaucratic speed bumps have delayed a final
product till this week. More complex financial vehicles will soon be traded on the MSE such as ETFs,
options, and other derivatives.
Remikon Lender Converts Loan in to Equity
Hera Holdings, a substantial Remikon (Ticker MO: RMC) shareholder, has decided to exercise its right
to convert its loan in to equity. Hera will buy 16.93 million shares representing 11.7% of Remikon after
conversion at the predetermined price of 100 MNT. The stock traded at 139 MNT as of today. This
bullish move shows that Hera is optimistic enough about Remikon's future to increase its ownership.
Trading Hold on Khurtai has been Lifted
Trading of Khurtai (Ticker MO: DAO) shares is to resume after being on hold since 2008. The company
claims to be in the agriculture industry but no specifics have been released. Khurtai was listed in 1993
after the fall of the USSR in the privatization wave of the 1990's. There is a high probability that it is just
a shell company that no longer has any working capital and is solely being purchased for its listing rights.
Mongolian Government Pushes for 50% stake in Oyu Tolgoi
The Mongolian government decided in a parliamentary meeting yesterday that it will try to increase
its stake in Oyu Tolgoi. According to the agreement signed between the State and Ivanhoe on October
6th, 2009, the state has the option to increase its stake until one year after the agreement or October
6th 2010. As that date has passed, the only way for the state to do so is to either nullify the previous
agreement or come to terms on a new accord. Either way, the state would have to buy-in, and raising
funds could cause a delay.
Regulation for Complex Investment Products Set
The Financial Regulatory Commission has issued regulation on structuring asset-backed securities.
The law initiating the project was passed last year, but bureaucratic speed bumps have delayed a final
product till this week. More complex financial vehicles will soon be traded on the MSE such as ETFs,
options, and other derivatives.
Remikon Lender Converts Loan in to Equity
Hera Holdings, a substantial Remikon (Ticker MO: RMC) shareholder, has decided to exercise its right
to convert its loan in to equity. Hera will buy 16.93 million shares representing 11.7% of Remikon after
conversion at the predetermined price of 100 MNT. The stock traded at 139 MNT as of today. This
bullish move shows that Hera is optimistic enough about Remikon's future to increase its ownership.
Trading Hold on Khurtai has been Lifted
Trading of Khurtai (Ticker MO: DAO) shares is to resume after being on hold since 2008. The company
claims to be in the agriculture industry but no specifics have been released. Khurtai was listed in 1993
after the fall of the USSR in the privatization wave of the 1990's. There is a high probability that it is just
a shell company that no longer has any working capital and is solely being purchased for its listing rights.
