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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.
Is it correct that there's going to be a dividend of up 0.15p prior to take over?
Michael Fraser former CEO of Chaarat Gold Holdings made a bid for Shanta earlier in the year. He has been appointed to be CEO of Gold Fields in January, one of the world's largest gold mining firms ($14+bilion Market Cap). I am hoping he and his board sees the value to offer a counter bid on behalf of Gold Fields. I am sure he's done his due diligence on Shanta and now he's got much bigger pockets to play with, if he sees it has a low ball bid like we do, he could easily offer a higher counter offer to counter this lame 13.5p offered by Patel and his friends. IMO, DYOR.
In the event of an offer that is greater than 14.85p (+10%) and I assume maintains a dividend commitment of 0.15p the acquisition from Bidco would be withdrawn. What may of us waiting to see on the next 3 weeks is whether anyone wants the company at that price and invoke a withdrawal. The Board would say the offer was fair if nobody makes a higher offer and therefore vote for what is on the table.
The Board is aware of the directors conflicted on any offers received, but the position is clear what that offer has to be.
If we received a 13.5p offer from someone else, this would have been rejected as a lowball bid (would have gotten another "rejected bids did not reflect value of the business" notice) and not a RECOMMENDED CASH ACQUISITION. The other Shanta BOD directors only nodded and approved this low ball offer is cos it is his friend Patel or there is something fishy going on. Surely needs to be an investigation of some sort regarding the independence of this deal recommendation. 13.5p does not make any sense when the company is performing and EBITDA to EV is less than 3x.
IMO, DYOR. Rejecting the bid.
Maybe not as high as 99% but your point is real.
wont invest in any company this bod have interests in thats for sure
Of course he’s in on it, him, the NEDs, the NOMADS, they all know which side their bread is buttered, they don’t rock the boat, on to the next NED role with the next miner. It’s the system, and it’s designed to keep 99% out of making money.
Looking at the share register, 22% ish retail, some already voted, but a hell of a % below 3%, not sure what they will do.
i also doubt there will be too much apathy, this is not local councillor elections, but think it will be closer than many think
ETC Holdings
https://etcholdings.net/
There is a box that says "Offer for Shanta Gold" but doesn't seem to go anywhere at the moment.
Maybe it's being updated
It could be a good strategy if they are confident someone else comes in, if it fails and no other offers its curtains for current bod, surely
therefore a bit risky and this doesnt feel remotely right, wouldnt be surprised if it passes by whatever means, it smells real bad
dont have a huge amount by vote is obviously NO
Zurrin has irrevocably undertaken to vote in favour of this highway robbery, the duplicitous piece of ****.
Look at Appendix 3.
"The only acceptable explanation for today’s bid for Shanta by existing shareholders is that they are doing it to spark other bids at a higher level"
I disagree............this feels very much like an inside stitch up.........Interesting that the face and voice of the company Eric did not contribute to the RNS. He may feel he cannot recommend the offer based on his undervalued comments over the last year. I imagine there may be a nice big job waiting for him with ETG.
That's nearly 700k to vote against now...
"The only acceptable explanation for today’s bid for Shanta by existing shareholders is that they are doing it to spark other bids at a higher level"
I thought that to start with but thinking further it doesn't make sense - any other potential suitor will just say that the NEDs thought it worth £142M so thus doesn't need to put in particularly much over that - 'cos the board can't argue its not enough!!!
1.05bn shares in issue
https://www.lse.co.uk/share-fundamentals.html?shareprice=SHG&share=Shanta-Gold
We dont really need bidders, we were supposed to be invested in the community and making huge money for dividends and this and that. why would they be so quick to sell out even at 20p ?
Hopefully an alternative bidder will show up ... this will be our last chance getting a fair price