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We all know the company is worth in excess of 20p minimum....But if the offer gets turned down....We have a board in charge ,who in my opinion,are not honest....not honest at all.....What would they do next?....
I agree, what on earth are people rabbiting on about saying that their cash will be 'tied up'? Or that the price is likely to drop if the 'agreement' falls through? You have to wonder who they are or what their motives are. In actual fact, the SHG share price is likely to jump if the current stitch-up agreement fails because with the price of gold and whole gold sector steadily rising on the back of very strong secular trends, and Shanta already highly undervalued - as Patel and Co. must know. There's now a fair chance that Barrick or another major will come along with some spare change and snap up Shanta at this price. IMO.
The other side of the coin is what happens if gold tanks early next year. Everyone holding has a 13.5p offer on the table.
What Shanta needs to do is allow time in January for everyone to examine all this. If the vote was week 4 in January they will have given other interested companies a chance to make a superior offer. To be denied a chance for that to occur could lead to a lot of trouble. Lombard Odier almost certainly wants to test if an interested party is out there. I can see why they wanted their interest being made visible. If the board wants to calm things down a bit allow time to do it and prove nobody else is putting offers forward at this time and they were reasonable in allowing time for that to happen.
Tony
I have got out with a good profit,but,I feel sorry for the Investors who deserve better ......Blatant robbery that leaves a sour taste in the mouth.....
Pedro61 - "6 months wait for 13.5p....or invest in a rising market.....?....and what happens if the offer gets turned down?.....Even lower price again?"
Why would the share price be lower in 6 months time if we are in to quote your phrase "a rising market"?
If shareholders vote down this derisory offer it will have been because they believe the market valuation should be over and above 13.5p. Support for this market valuation will be underpinned as the amount of cash on the balance sheet balloons $10-15m each quarter! Nice try though..
Patel added: "As part of ETC Holdings, Shanta will benefit from the experience and connections of ETC Holdings and ETG in East Africa and as a result, have additional support during the currently heightened levels of macro-instability."
Aren't the experience and connections he talks of exactly the reason he's on the bloody BOD in the first place? Is it not part of what I imagine is a lucrative position (certainly is now) for him to provide this as a director for God's sake.
The whole episode stinks to high heaven and makes no sense at all. I really thought SHG were different. Looks like I was wrong. Dodgy doesn't even come close to describe this BS. A bloody disgrace.
It's a big, fat NO from me
With an offer of 13.5p on the table ,it is highly unlikely that this s.p. could rise above that....So when I say "trapped",I mean that the s.p. has little chance of a meaningful rise,so in a sense this is now a "trap" to those that remain and wait....
I have done VERY well out of SHG, thanks. Don't fall in love with a company is my advice!!
Dave, it's extremely unlikely - if accepted by over 75% of shareholders - that this will take as many as 6 months. 2 or 3 is more likely. The longer the process, with gold continually riding higher and Shanta overflowing with cash, the more obviously it's being sold for far less than its fair value. It's ludicrous for Liberium to say it's a fair deal when their own price target was 32p.
ETC have had months to look at the books and discuss and plan this takeover with the SHG directors, who have unconditionally promised to support the bid.
Any company wanting to counter bid, would not have the support of the directors, and may not even be allowed to look at the books.
'trapped' - utter rubbish, what are you talking about?
The offer is derisory and blatantly unfair....But, reality of being trapped in a share going nowhere till it is sorted out,has to be faced.....Offer turned down and we have a problem with the board who run the company....A board who are blatantly selfish and unfair...a board who put the shareholders in last place....
Interesting how a few are now spreading misinformation about money being 'tied up' or 'locked in'.
Wonder who these posters really are?
Also there is the possibility of a No vote, or other transaction failure, and we could be back down to sub 12p . so you could get a 10% drop or a possible 4% that takes 3 or 4 more months. so stop trolling people who have sold at a profit at 13p, while none of the experts on this board saw this coming.
personally if i had the kind of stake some people on here have talked about (and underwater) I'd consider legal action v various Shanta personnel for breach of fiduciary duty or similar - no doubt it stinks
6 months wait for 13.5p....or invest in a rising market.....?....and what happens if the offer gets turned down?.....Even lower price again?
Dth
Yeah we get it....you sold out and missed the fun of this incredible offer lol
Investors are selling to use the money to incmvest elsewhere obviously, 4 or 5% less than if holding but then your cash is tied up for how long....???? 6 months or more????
No, why? ite pure calculation ... sell 4-5% below the offer price because worst case this is dead money for a half year ... you can buy cheap other stocks like Montage Gold , Dundee Precious Metals , Torex gold , Marathon Gold or others for a bigger chance of a gain.... or you stay here ..waiting for an takeover battle..
Misleading headline from Alliance News, the suggestion being Shanta has already agreed to the takeover. It's clear in the article the takeover HAS NOT been accepted yet, it has only been rubber stamped by a sell-out board but the headline should make this clear!
There will be no takeover if shareholders with a combined total of 25% or more vote AGAINST. Or in other words it needs 75% to succeed and right now they have 19.2% only!
Here is the offending piece copied below.
Shanta Gold accepts GBP140 million takeover offer from ETC Holdings
(Alliance News) - Shanta Gold Ltd on Wednesday said its board has agreed to an all-cash takeover offer from industrial conglomerate ETG that values East Africa-focused gold producer at just above GBP140 million.
Saturn Resources Ltd, a wholly-owned subsidiary of ETC Holdings (Mauritius) Ltd, offered 13.5 pence per Shanta share in cash, valuing all its equity at GBP142.0 million. Shanta shareholders also will receive an interim dividend of up to 0.15p to be declared by the Shanta board and paid prior to the takeover.
Shanta shares were up 2.4% at 12.95p on Wednesday afternoon in London. The stock is up 41% over the past year.
ETC Holdings is an investing company that is the controlling shareholder of ETC Group. The industrial conglomerate, which trades as ETG, operates in agricultural commodities, metal and energy. It also encompasses agricultural inputs and logistics, as well as other businesses.
ETG is controlled by Ketan Patel, Birju Patel and Mahesh Patel, with Ketan Patel already a member of the Shanta board.
The offer for Shanta has been accepted by its first and second largest shareholder, with 8.7% and 8.6% voting rights each, as well as by Shanta directors representing another 1.9%. It has 19.2% acceptances for the offer in total so far.
"As a shareholder in Shanta, we remain supportive of management and their strategy," Ketan Patel said. "However, we believe that Shanta's share price may inhibit Shanta's ability to deliver on its strategy and potential to maximise future shareholder returns."
Patel added: "As part of ETC Holdings, Shanta will benefit from the experience and connections of ETC Holdings and ETG in East Africa and as a result, have additional support during the currently heightened levels of macro-instability."
By Tom Waite, Alliance News editor
I guess this is partly why companies have nothing but disdain for retail shareholders: they are mostly idiots and very easy to take money from
* and the financial gains Shanta are generating every quarter!
Need to know the present state of play ..are we now all profit, what are the latest drilling results?? Of course the last results were pedestrian to say the least...perhaps now we know why...would be wholly shambolic if just after the takeover, spectacular results suddenly appear...stinky stinky, I will not be selling mine yet ..
"Anyone fancy organising a campaign?"
With 200+ replies and counting the campaign is already beginning to take shape. The vast majority of ordinary private investors commenting recognise the offer is below fair value and are prepared to vote against. I'm sure more information on Bidco will come to light but my gut feeling is this is opportunistic and will fail given how narrow the premium was at the open today and the financial gains being made every quarter!
My intention is to hold and vote down this initial offer. GLA
The takeover has a latest completion deadline in October 2024 although it should be done before that time frame otherwise I presume acquisition is terminated. The RNS confirms a divi payment for those holding on the declaration date which I presume is in March 2024. I presume it has to clear the court first and then goes to an EGM late January. A superior offer has to arrive in January before an EGM vote.
It will need to be greater than £155M. The £14M would be recovered by Q3 2024 imop.