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Good idea. Questor recommended this stock a while back so they will be aware of it.
Since the Board are determined not to let the sunlight in I thought I'd contact Questor with a synopsis of the situation. Being Xmas they'll be winding down but you never know! Perhaps we can embarrass them into behaving properly.
Happy to post the body of the email if anybody wants to publicise the bid in any other way.
Appendix 3 of the RNS shows Zurrin, Sustainable Capital and Lombard supporting the bid by way of irrecovables/letter of intent. I really cannot work out why it is in their interest absent some undisclosed matter that could be damaging to Shanta.
Who wouldnt put in £10 to see the wonderful eric do another meetme ? with all the usual *** licking and dumb *** questions, and the thanks at the end for a job well done, best of luck in your next endeavour etc
to find a ceo for an about to be profitable gold produer should have been a walk in the park, even if they moved on from a proper bid you would still get a nice payout.
we needed either an experienced geologist or engineer, not the banker we got
I spat out my tea when I saw the news of the buyout price.
Clearly against shareholder interests and the true value of the company. After seeing the connection Patel has with the bidding company, I smell corruption at the behest of shareholders. We shouldn't encourage or allow this market behaviour in the UK. I will be voting no with my shares. Total shame
The previous offers were a huge red flag as they never felt like genuine formal offers, just a load of hot air.
and to answer below yes he would sign up for it for a great new jiob with enhanced package err hmmm
Surely it's likely that a few institutional investors are selling some of their holdings in order to realise gains for their books for the year now, knowing that the price isn't likely to head over 13.5p before the end of the year. Hence, enough selling pressure to temporarily keep the price hovering at around 13.0p. A great opportunity for retail investors to lock in an approximate 5% gain (including divi) with potential for real upside if a new bidder comes along.
I can't believe that Eric supports this either. It really isn't in his interest.
I am interested to know what the previous offers were if they were too low and this one is acceptable?
I dont believe Zurrin has signed up to this
What makes you think Sustainable Capital agree to this?
Looking back further investment monies were raised at 16p to develop the West Kenya asset. Anyone who bought at that time is underwater by 2.5p. If they are so keen on 13.5p why not offer a 1.5p dividend instead of 0.15p. It would have gone down somewhat better today but instead they were disrespecting longer term holders here.
What surprises me is that the share is not moving up to 13.5 and has moved backwards. Usually a share price is on the offer and we do not have games like this by the market maker and institutional holders. If they want to make private small investors more irritated they have done precisely that today.
I hope we do get the superior offer coming in and that this was the intention of the board all along.
Actually, ignore my posts on this. Sorry. Patel has always had a fairly significant minor stake. However, there is something very strange going on in the background. I cannot understand how Sustainable Capital, Lombard and Zurrin have signed up to this deal. It has the feeling that there exists some loosely barely articulated downside that could hit the company if they did not. Extremely difficult to know what is going on.
I’ve only 50k shares but I will be voting against! Low ball bid by management smells fishy
Sorry, significant correction - 363k shares is clearly not 30% of the company but other questions still stand.
This is a key paragraph in the announcement:
“The Shanta Shares owned or controlled by Export Holdings, a company associated with the UBOs, including Ketan Patel (being 44,488,248 Shanta Shares as at the close of business on the Latest Practicable Date) will not constitute Scheme Shares. The Shanta Shares owned or controlled by any Bidco Connected Individual (being, in aggregate, 363,448 Shanta Shares as at the close of business on the Latest Practicable Date) will constitute Scheme Shares. No member of the Bidco Group or any Bidco Connected Individual will be permitted to vote the Shanta Shares owned or controlled by them at the Court Meeting but will be permitted to vote such Shanta Shares at the General Meeting.”
I am not entirely sure as to import. However, firstly note that Patel & co have managed to get almost 5% of the company without notification (I need to look at this more but I suspect they have hovered under overseas notification requirements). Secondly, Bidco Connected Individuals seem to own 363k shares (over 30% of the company). I don’t understand (a) who they are; and (b) on what basis they have avoided stake building disclosure requirements. Does BidCo Connected Individuals include Sustainable Capital & Lombard? Seems unlikely. Does anyone know? Thirdly note that there are two votes with different structures - the Court vote and the general meeting vote.
Offer price is based according to them on the following (Don't shoot the messenger)
Based on Market valuation :
The Consideration of 13.5 pence per Shanta Share values the entire issued share capital of Shanta at approximately £141.95 million and represents a premium of approximately:
→ 6.72 per cent. to the Closing Price of 12.65 pence per Shanta Share on 19 December 2023 (the "Latest Practicable Date");
→ 23.28 per cent. to the volume-weighted average Closing Price of 10.95 pence per Shanta Share for the three month period ended on the Latest Practicable Date;
→ 32.63 per cent. to the volume-weighted average Closing Price of 10.18 pence per Shanta Share for the six month period ended on the Latest Practicable Date; and
→ 27.74 per cent. to the volume-weighted average Closing Price of 10.57 pence per Shanta Share for the twelve month period ended on the Latest Practicable Date.
The offer price should be higher and I suggest that they pretty much agree with this themselves, there offer has been made against what value the UK AIM market has been attributing to SHG over the past, recent period :
De-rating of gold sector valuations..............
Over the last decade, the valuation of publicly listed gold companies has de-rated with industry research illustrating that UK listed African gold miners are now trading over 40% down on a P/NAV basis than five years ago. Bidco believes the impact on junior gold miners within that peer group is exacerbated by other factors such as lack of diversification, jurisdictional issues and poor liquidity.
Poor liquidity is the biggest one I suggest plus shame that this comes just as we have increased production into rising POG
I,m waiting a few weeks to see if anything develops
SHG directors connected with the company doing the takeover??
Apart from companies in distress, how many do you know were offered a paltry 6% premium in a takeover bid? Worse still, how may boards have jumped at a price which may well have been reached today anyway on rising gold and falling inflation?
Really terrible decision and questionable behaviour. All that can be done by PI's is vote it down which given the proportion not with institutions can probably be achieved. I've waited long enough and not prepared to see such blatant carpet bagging succeed.
Bitcoin and gold are incomparable, though many obviously try to link the two, very wrongly labelling Bitcoin 'digital gold'. Gold's physicality and historical record couldn't contrast more sharply with Bitcoin's nature as a digital invention and Bitcoin's lack of record as as a store of value over the long term. Besides, anyone at any moment could create yet another cryptocurrency superior to Bitcoin, and so on ad infinitum, and we all know what'll happen to Bitcoin when quantum computing develops sufficiently to crack blockchain. "Gold is money, everything else is credit" has never been truer, barbarous relic or not.
Relevant record date with regards to the divi.
It all feels like a kick in the Cadburys.
Kkkrrr is wrong, imo, Gold will not be correcting next year. B of A just forecast $2200 to $2400 for 2024. Putin and BRICS will be a driving force along with the Shanghai/LME connection. Selling because gold 'might go down' is daft. On that logic no-one would hold anything.
I guess Bitcoin would be a good example, though many have made money from it; we don't hear from those that lost money.
Kkkrrr, no-one can be sure of anything about markets, especially over the short term. But we know for a fact from all the evidence from the past century and more, that gold does very well when currencies aren't backed by any store of value and are abused through real or virtual 'money-printing', when there's geopolitical instability, when there's unsustainable, ballooning national debt, and when real interest rates are falling. The next couple of years are looking very VERY good for gold.