The difference between the rich and the poor is the poor are liquidated, and in this case Rio Tinto is doing the liquidating of the poor at the bottom of the market.
Inova Resources, we barely knew you.
Rio Tinto, as part of taking over Ivanhoe (the first one), got control of Ivanhoe Australia. They are selling the company for a fire sale price to the Chinese (Shanxi Donghui) after, of course, spending a bunch of money rebranding the company as Inova Resources.
This sale reminds me of the fire sale of Baffinland just before the market rebounded last time. The bottom fishers are out buying cheap assets and Inova at $150m is a cheap asset. Mind you, Baffinland had two bidders (even if they eventually get together for a joint bid).
I understand why Rio is letting it go; none of the assets in the company are relevant to them, but I still think they did not try very hard to deliver value to the minority shareholders as part of the process. I am shocked that no one else made a bid. The company clearly has significant value and the Chinese are getting a great deal.
The fire sale process does not make sense, but then again, not much in the junior mining space does this year.
Why we feel the need to sell out to state owned ( or controlled) foreign entities is beyond my comprehension