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this is certainly a manufactured takeover, brokers have been forecasting between £.85 and £1.20. they've issued the shares at £.45 DRIVEN THE PRICE Down to around 40 pence then averaged the price and given us a 50% sucker punch. no where near the lowest broker ratings. this is what take over companies do. i am afraid that's what is happening here . happened to me at Welsh Water. with this share i bought in at a pound halved my holding at £2.5 now , i'm playing free of risk. but still believe it's worth hanging in there for an increased and fairer offer.
The current price might allow any institution, if need be, to average down so they come out even or better.
Ganfeng are a major shareholder but to suggest they already have control isnt logical. They are businessmen and we have to assume our BOD are also businessmen (even given their track record) and will negotiate a better deal, rather than skip off into the sunset with a small bag of swag ! This company has been under marketed and isnt well known to many outside a dedicated band of investers and Ganfeng are taking advantage of this, assuming it is an accident which I doubt.
Yep, agree Tiger. This is a done deal, maybe M&G can force a few pence for their support to get it over the line but it will be just that - a few pence more
Given BCN is fully funded to production I think it unlikely . Ganfeng are investors so why sabotage the project when they have invested in heavily? Couple the fact that they want the actual lithium as soon as. They run other JVs, why wouldn't they continue with this even if it is not their preferred option? Chinese are hard businessmen, not vindictive. If it were Donald Trump then you may have had more of a point!
No, there is a real threat there. That's probably why the board agreed in principle to such a lowball offer.
The institutional investors might haggle for a better price, but I'd be surprised if Ganfeng don't win out in the end.
I was thinking last night, if the offer is somehow rejected; where does that leave us with Gangfeng being our biggest sharehold and JV partner in the project?
Do they spit there dummies out and make it impossible going forward? I'm guessing they could make life extremely difficult for us? Could they go as far as to basically cause the project to stop so we end up running out of money and they buy the assest of liquidators even cheaper then the offer they are possibly going to make next month?
I too think the offer is dirt cheap but somehow feel like we are the weaker party in the current structure, we probably need them more then they need us right now I think.
What do others think? Am I worrying about nothing?