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Longlad, not sure who indicated that the bod have substantial holdings, take Dan out and there are a good number of PIs with bigger holdings than the other bod members. Best link I have found for holdings is on Morningstar. It’s updated every 3 months, so next due end of September. http://investors.morningstar.com/ownership/shareholders-major.html?t=HUMRF
Sands
Do you have a link to share ownership? Wasn’t able to locate on website, curious to know who has skin in the game.
Only info I could get was https://www.sharesmagazine.co.uk/shares/share/HUM/director-deals showing Dan’s last purchase being in 2015. I did note however reading through earlier posts that bod already have substantial holdings.
Cheers
Hi Matchmade, it depends. The 90% is a level at which the offeror can enact a Companies Act squeeze out where they can force the acceptance of the remaining 10%, so those shareholders would not have the choice but to sell. Should the offeror get less than 90% acceptances then they have a choice to either walk away or drop the acceptance threshold of the offer. That would potentially mean that the offeror doesn’t get 100% which would be irritating (having a bunch of small minority investors) but equally is a pretty good threat to those remaining shareholders to accept otherwise they will become small minority holders of an illiquid unlisted company controlled by the offeror. Dropping below 75% becomes further problematic as special resolutions can’t be automatically passed and then below 50% is a no go for obvious control reasons. Hope that’s clear.
OL - forgive my ignorance as I've never been through a TO before. What happens if the BOD recommends an offer and fewer than, say, 90% of shareholders accept within the given timeframe? Does the BOD just carry on with a disgruntled major shareholder and the remaining diehards? And if the 90% threshold is crossed, how exactly are the remaining 9.9% "squeezed out"? Are they forced to accept the offer price and have their shares sold against their will, for cash or shares in the NewCo?
Thanks for your answers, and my education continues.
The day has not been wasted. Thanks for the detailed explanation OL.
An offer proposal would be put to the board, who would then negotiate that offer with the potential acquirer. If friendly then an agreed deal would be put to shareholders under a rule 2.7 (under the takeover code) announcement with a recommendation from the board for shareholders to accept. This would be followed by an offer document setting out full terms and giving time for shareholders to accept or reject. Assuming the offeror’s acceptance theshold condition is met (often set at 90% for full control), then the offer would complete (the remaining shareholders beyond the 90% would then be squeezed out). A hostile offer would proceed slightly differently (eg the board defend against the offer) but it still gets put to shareholder vote.
Taking into account is it 30% of shares in the hands of PI's our view not going to be the decisive one, imho.
Shareholders vote
Not of a financial background, so I ask. Is an offer price put to shareholders, or is it up to the board?
... how much the share price has reacted to spot gold fall. it shows the price isn't based on speculation but on output
The sad reality is that gold has dropped $50-75 in the past month. HUM is now an active miner with pretensions of producing 100k oz p.a. That change in spot price equates to atleast $5mm p.a to the bottom line so even on a p/e of 5 that should make a 25mm difference to the market cap.
Does this present a good opportunity for a vulture to come in with a takeover offer - absolutely.
But if that happens I would expect the board to be honest and truthful with the speed at which production is growing and the life of mine. If 100k oz is realistic and sustainable and if we have AISC of $800 then even with gold hovering around $1200 this company should be worth much more than 45p