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I posted earlier in this thread that there was a run of small trades on Friday – they were actually on Thursday, at 14:16:20. Thirty of them in quantities ranging from 2 to 385, with all but six under 100. Small investors in managed accounts, perhaps keyed to some index?
I'd imagine most brokers will have a standard share holding account so shares which can't be held in an ISA or similar will get shifted into a new account. This happened to me with Erris Resources who became ZNWD. They spun off the Scottish Gold Mining business into a new company, Erris Gold Resources, which isn't listed on any exchange. So I now have these shares sitting in a standard share account which I cannot sell (easily) until they take up a listing.
I believe what will happen with the BCN shares is:
If holders have not sold their shares by the Start of Trading on 22/12, (as per the RNS) the stock will be deleted from AIM and the individual brokers will have to work out how the shares can be held or convert them to paper shares. Either way they will sit dormant until someone (Ganfeng) offers to buy them.
All the while those shares are sitting in dormant accounts or paper certificates, Ganfeng can make use of that capital rather than purchase all the shares themselves and be using their own capital. It doesn't make sense for them to buy more than the 75% required.
Why would they convert to takeover by Scheme of Arrangement if they 'will have 75% before the end of the week, and when the accounts not allowed to hold unlisted shares sell, they will be at 90% or close enough to it that they can buy the rest.'? It is then job done. Why start again with a Scheme of Arrangement, a different process involving the High Court?
There may be a second person in the world who believes Ganfeng will now risk converting to a scheme of arrangement, but so far only tomcat has made an appearance with that theory. The path forward is clear: Ganfeng will have 75% before the end of the week, and when the accounts not allowed to hold unlisted shares sell, they will be at 90% or close enough to it that they can buy the rest.
Yesterday there were a number of transactions for small holdings -- less than 10 in many cases, less than 20 in many others. In the US I would see these as coming from managed accounts that mirror an index. There must be some explanation like that in the UK, maybe some locals have it.
they do seem to have been able to keep the offer suspended rather than have it automatically resume at the anticipated t-28days after obtaining macc1… probably in everyone’s interest (ganfeng bcn and the panel) for them to achieve the 82.16% now required for them to revert to a scheme and get the takeover completed in the quickest and easiest way possible from here… the 75% and 20days notice of the cancellation rns sometime next week giving us the last little push needed… 20-days to get from >75% to >82.16%… with shareholders still being able to accept at the simple press of a button in their trading accounts during that time…
daily acceptance level reports are required in the last 7-days leading up to day 60…
Bob
First entered my world about 10 years ago when a good friend of mine (who hated business speak as much as me) entered it into a meeting full of corporate suits. It was priceless to see their faces drop. As I age it is a great word to describe my recall and thought processes
@tomcat "there’s another tot up also on the 22nd… so thursday if not before…" I recall some provision that they had to make daily announcements once a certain level was reached, but I don't recall what that was. I expect shares to trade Monday at about 65p, ex-ZNWD dividend, and Ganfeng to be among the buyers. Really no reason for them to have started Friday because why would they want Zinnwald? That takeover would never be approved.
@johnpwh When I was in my teens my fellow American classmates all knew the joke about "eschew obfuscation" -- even though it came from the British philosopher Paul Grice. You're just now discovering it?
I can't see why GF would carry on acquiring shares. If, as the RNS suggest, they have control of the company why would they bother. They now have their Lithium supply at cost price, the remaining shareholders are not going to get market value for the Lithium. Ganfeng can sit back now and pick off the remaining shareholders at their leisure. Who else is going to by them if they are no longer listed?
I am sorry to say it but I believe that hanging on is grasping at non-existent straws.
dave
I would be thinking much the same as you regarding getting locked in, but others may give alternate opinions which hopefully they will express.
Personally it wouldn't normally concern me having an (modest in relation to my total net worth) investment in an unlisted Company with the massive prospects of BCN. However it would worry me about GFs attitude towards BCN - they are not acquiring shares in BCN as a company to (directly) generate profits - ie this isn't, as such, an investment . They primarily want the product in the mine, that's what this is all about - I am no expert in the protections given to minority shareholders, but I would be worried that the Sonora production would have a single customer ie GF. Of course the deal to pass Mexican Anti Trust may cover that off. But guess what......WE DONT KNOW BECAUSE WE HAVENT BEEN TOLD..
I really must watch my blood pressure. Think I'll have a cuppa.
Given the Mexico antitrust thing has now gone away, are shareholders better off accepting the offer now?
I am concerned my shares will be locked in some untradeable state in a privately owned company. :-S
Well said....small investors are being ripped off....if HMG wants to encourage small investors to invest in the stock msrket this lot should be in jail....doing nothing about this shows HMG dont give a monkeys
RNS 17/12 7:00
"Furthermore, Ganfeng confirms that all remaining Conditions to the Offer have been satisfied or, where applicable, waived. Accordingly, Ganfeng is pleased to announce that the Offer has become unconditional."
"Ganfeng will procure that Bacanora makes a regulatory announcement when the necessary 75 per cent. threshold has been reached confirming the anticipated date of cancellation."
RNS 17/12 17:30
Bacanora Lithium (UK): Constituent DeletionChanges in FTSE UK Index Series
17 December 2021
Following the cash offer for Bacanora Lithium (UK, constituent) by Ganfeng International Trading (non-constituent) being declared wholly unconditional, please see details of affected indexes and effective dates below:
Index
Effective FromStart of Trading
FTSE AIM All-Share Index 22 December 2021
Am I really missing something or are they lying in the RNS.
What a shambles this is, To use my favourite 2021 word again, obfuscation to the very end. How can you have a decision process (I would have said a democratic process but that is strictly applicable for politics) involving thousands of voters when the vast majority of them don't understand fully what they are voting for, what the timetable is, how that vote will affect the liquidity if their assets etc etc? And that is amongst people who are interested enough to post here so god help the poor buggers who don't have the means to try to seek clarification amongst interested peers.
As already related here, after voting I considered buying back some shares I had disposed of post September. It was unclear if I could make a second vote in respect of those 'new' shares - the broker waffled and covered their backs (no surprise), so I contacted the Link people (see RNSs) who are supposed to help the confused and bewildered like me - and after 45 minutes on the phone they basically apologised and said 'sorry me old mate we cant find out'.
This shouldn't have been like this. I'm convinced that the confusion was part of the plan to get shareholders to give up. After investing/gambling in equities since before Mrs Thatch and her privatisation I honestly have never seen anything quite like this. Rant over, though I reserve the right to have a Sunday rant if I feel so inclined....
they are giving 20 business days notice for the cancellation… (see page 50)…
Maybe I'm reading it wrong but doesn't yesterday evening's RNS give notice that they are delisting from AIM on 22nd December. Wouldn't that suggest they already have the 75%.
ganfeng will procure that bcn makes a regulatory announcement when the necessary 75% threshold has been reached confirming the anticipated date of cancellation… (de-list off aim and re-register as a ltd co)… there’s another tot up also on the 22nd… so thursday if not before…
and thus, GFL will be a major shareholder in ZNWD with circa 26.2K shares. Is another TO in the making? :-)
@john Totally understand that. I think most brokers are still open for acceptances until Monday or Tuesday so it is quite possible that 75% will come by then. Will be watching the price movements with interest.
Yes Bob, understand that, and fully understand the nature of the distribution as a dividend.
That is interesting in the UK as i think with respect to taxation the ZNWD shares will be taxed as income because they are a dividend, presumably at their value at market open on 22nd. For future Capital Gains the same share price would be used as the acquisition cost. So no need to split the BCN acquisition cost between the 2 holdings which would have been true if the ZNWD shares were part of the offer.
There seems to have been much confusion here with brokers - the offer form I had from my broker phrased the ZNWD distribution as part of the offer - I would cut and paste it here but it disappeared off their website when I accepted it.
I know you have caused a bit of upset with some of your comments, but much of what you posted has been useful - in particular the spot on 15th about the Mexican meeting on 16th, played a blinder there.
@johnpwh The offer from Ganfeng did not include the Zinnwald shares, and they are continuing to hold the ones they will receive because of their pre-offer holding. The Zinnwald shares are a dividend declared by the BCN Board, subject to capital reduction rules and the condition that the Ganfeng deal becomes unconditional. Ganfeng had to agree to let them do it, while still keeping their cash offer in place.
If I offer to give you a candy bar if you sell your shares to Tom, that is a different deal from the one you two have. Even if it involves ownership of the candy store.
Matthew it wont instantly delist at 75%, GF will need to make an application to the Stock Exchange.
So xd is 6pm tonight and the shares sold from Monday will not have the ZNWD distribution attached. So I'd guess the SP will drop to 64 ish Monday? Or will it - what does a buyer next Monday morning get? Not the ZNWD shares as BCN will be xd. Can buyers from next Monday accept the offer even though the offer included the ZNWD distribution which they wont be entitled to? Confused and bewildered
So still only at 73.9%! LOL. So close yet so far, seems it will remain listed for a wee bit more. At least we get our ZNWD shares on the 22th.
16dec… day92*… 172,931,513acceptances… 1,879,690/day…
75% rns should be monday at this rate… but it does seem to have dried up since the previous acceptance update… only the hard core left…
I guess :*(