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Nah, new management have no incentive to sell everything, they want their options at 50p!
Also, the delay is surely down to stuff going on in Egypt. If their civil service is like ours they're all working from home watching daytime tv.
One of my theories about the delay in selling Egypt is that the buyer wants Morocco too and a full takeover is in the offing
I wonder if its this company that is interested in the assets.
https://wintershalldea.com/en/where-we-are/egypt
Any cash in Egypt will be part of the sale deal and therefore recieved in dollars
If the IMF short out Egypt, SDX may even get a better price.
The new management are basically like those guys that buy cheap stock and sell them into bits. They trying to get best price for the egyptian asset in bits. All eyes will be on SD and what price they get for it.
Also they have some cash and receivables in egypy will that extract some cash? We shall see..
I understand that the official exchange rate is unchanged,just the 'black market'which of course is not available for business transactions
Well they got a loan at an interest rate of over 20% (SOFR+15%). Aleph put in the new management. They're running this show.
Silly question.Please answer mine
Https://www.google.com/amp/s/english.alarabiya.net/amp/business/economy/2024/02/05/Egyptian-pound-skyrockets-following-landmark-agreement-with-IMF
Sdx fell from near 10p because of the financial issues in egypt, it appears it will stabilise soon.
If its a russian buyer and they tell us then we can understand the delay and getting money to us maybe difficult but possible.
Cube - it would explain a lot. The deal is conditional on state-owned assets being flogged off as well...
https://english.ahram.org.eg/NewsContent/3/12/517148/Business/Economy/Goldman-Sachs-expects-EgyptIMF-financial-deal-to-r.aspx
Littlened
Do you own 75% of the stock?
The big question is, what is going on?
Maestro please explain how Aleph with around 26% of the shares can force any action which the rest of the shareholders dont want
It is frustrating waiting for the news but I do wonder if the discussions Egypt is having with the IMf are having an influence. I have seen some numbers quoted that would see a rerate of the Egyptian dollar and hopefully, all I have here is hope, a beneficial knock on effect in the value our value of cash held and chance of getting it out one day if it's not part of a deal.
But the other thing I did feel was missing in the last update, was detail and any mention tion of the cash specifically . Just the sale of west gharib and south disouq.
They drew down more. It was in one of the rns.
Even if you take $2m figure, what is 15% of that in 6 months? Aleph is making free money, they screwed us shareholders by rejecting deal.
We need the deal wrapped up asap. Who is the buyer...
Btw loan rate is 15% not "close to 20%".
As far as we know it has not been drawn apart from te initial 2 million back in July.
Why would SDX need the loan if they're about to get ~5-7m?
Legache
50p and 100m mkt cap? Even im not that optimistic.
Aleph will convert the convertible loan of $3.25m. That is 25% of the company. So company has been diluted by 25%.
They can trigger a buyout anyone who says they cant need head examined. Dont forget the generous interest rates aleph are getting for convertible loan close to 20%.
Aleph rejected the deal and beneffitted more and got more control of the company.
I voted against the deal, so lets not just make out it was Aelph. It was a crap deal relative to NAV. I still maintain that. I know at least one other large PI who also voted against and shares my view. So lets not pretend that there is some Orwellian deal going on where Aelph take us private. There is not.
Vis-a-vis a year ago, many would argue, assuming the Egypt deal fully tranacts, then we are in a better deal. Expect the SD deal to add circa 7p per share alone. Why would any holder be looking for a 6p takeout.
Management is incentivized all the way up to 50p and 100 million cap. Why would they sell for 6p!
You're simply stirring I am afraid.
1. Aleph blocked the sale for their own interests. The sale should obviously have been agreed.
2. The business isn't what it was. This business burns money. It's simply worth less than it was.
3. I think the business is currently worth more than 6p, but that won't be the case for long without dramatic changes.
Well I’m not sure why the major holders would sell now for 6p when they turned down 11p a year or so ago especially now with the solid progress on the Egypt sales news on which is overdue but I think the IMF deal will unlock a lot now
Well said 34ad. Legache I think shareholders would take 6p now under existing circumstances. Aleph would achieve what it originally planned. Let’s see what the next rns brings as this could be the game changer or the final straw
Shareholders rejected 11p, so 6p hardly going to wash.
I'm not a shareholder atm, but at this point, I'd consider 6p a good outcome for shareholders. The longer this goes on without the co being sold/wound down or a dramatic new investment program with a clear path to FCF, the more likely it is that things will end really badly.
Egypt seems to be making some progress with the IMF so that's a positive.
Barhut,Aleph dont have enough shares even after the conversion of the loan to force anything.If your worse scenario is a 6p takeover why arent you filling your boots