This should explain it, an investor cannot hold more than 20% unless either the EMED board give permission or they make a full offer to buy the company. If Trafigura or anyone else go over the 20% they would have to make an offer to all shareholders to buy the company. If, as we assume, Trafigura are biding their time until the final permits are granted before making a move, then they have to make sure their holding stays below the crucial 20% threshold.
It makes sense for Trafigura to buy now. The percentage matters as it determines their ability to influence EMEDs future.
1, It prevents or deter anyone else buying EMED. 2, If EMED does sell to someone else they can force up the price, which will either put off the buyer or they make a tidy profit. 3, If they want to buy later because they bought 18% so cheaply they can afford to pay a premium for the remaining shares without paying more than the company is worth. 4, If things were to go belly up for EMED they're in a great position to swoop in as the saviours of the project and buy it cheaply.
It's a very well thought out maneuver, Trafigura can not lose.
So we could be back at 7.25p in a few days if nothing develops. Trafigura may be just looking at EMED in the same light as the rest of us pi,s. Huge potential,longer term.Also the slight possibility of a T/O bid in the short term. Or somewhere in the middle,medium term,EMED at the very least,looks well undervalued.A very good place to stick some spare cash.H.
Much earlier in the process than I had hoped but it seems that Emed may now be "in play". I had hoped that we would develop to a position where our true potential value could be established,not bought cheaply prior to production by whichever large mining company is given the nod. At least there appear to be several interested parties ,currently,& hopefully GLEN will throw their hat in the ring at some point,but there is a possibility that 20p is now more likely than 50+p. That being the case we shouldnt complain but having supported the company for years it would be pity for many here to see us sold cheaply.
Home::Regulatory News (RNS)::Trafigura Acquires Additional Shares in EMEDBookmark this page Regulatory News
Trafigura Acquires Additional Shares in EMED Tue, 26th Aug 2014 09:35
RNS Number : 9932P EMED Mining Public Limited 26 August 2014
? AIM: EMED TSX: EMD 26 August 2014 Trafigura Acquires Additional Shares in EMED
The Company has been notified that Trafigura Beheer B.V. ("Trafigura") has, through its wholly owned indirect subsidiary Urion Holdings (Malta) Limited ("Urion"), acquired 30,856,481 ordinary shares ("Ordinary Shares") of EMED effective 21 Aug 2014, pursuant to private transactions. The Ordinary Shares were purchased by Urion for a value of GBP 0.09 per Ordinary Share (approximately $0.1633 Cdn. per Ordinary Share). Trafigura now exercises control or direction over an aggregate of 259,029,997 Ordinary Shares, representing approximately 18.04% of the outstanding Ordinary Shares. Trafigura has stated that it has acquired the Ordinary Shares for investment purposes. Depending on market and other conditions, Trafigura may change its beneficial ownership of, or control or direction over, Ordinary Shares through market transactions, private agreements, treasury issuances or otherwise. Trafigura has no role in management of EMED and has not appointed any nominees to the Board of Directors of EMED.
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