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Very impressed Joeman
Fast response to your enquiry then Kenny.
Good to hear they respond to relevant questions
My concerns regarding the possibility of the company been taken private has been allayed. I can rest easy as that was my biggest concern after reading the RNS.
You are correct that the imbalance of control was already there, it is just that I had not focussed on it. It was only the RNS that highlighted that three groups who obviously have a close relationship now own over 70% of the shares, and it is rarely good news especially the closer they get to 75%.
In fairness, I have been involved from the beginning. I like Adam, and I trust that he would always look after the interests of the PI’s, but the risks are there.
I have taken the opportunity to write to him to see if he can allay any fears or concerns that PI’s like ourselves could have. He could do this in any future corporate presentation or podcast.
I see the risk Kenny, and I think the imbalance of control was already there.... hence this cash raise was made now.... so close to extremely high value news .... at a 10% discount to current sp .... and not offerred to wider retail.....it was all for the benefit of those shareholders.... Best for he company would have been to wait a couple of months before raising.
I think that bargain buy was just the sweetener for those parties.
I hope I'm not being naive but I dont think it necessarily means they will work together to trounce small PIs.
Kenny, Similar to my thoughts on the ownership issue also, But no one entity has the 75% its still a few major shareholders, would they go together in taking private, can they do that?
I also have a significant holding ( for me ) about 42k shares with buys across the whole range of prices, last one yesterday!!!!!! so Im hoping there is no internal buy / taking it private.
Gonna be seriously Pssd off if its one 10p dividend and then "goodbye and thank you"
Biggest benefit of taking it private is to buy the remaining shares at a relatively low price, albeit at a premium to the current price. That then enables the shareholders to ultimately sell the company in due course, maximising their returns.
What would be the point of taking it private?
Surely the greatest return for their investment would be to get company running profitably and then selling on at a high price?
GL.
Sorry for obvious typo. Should be “ challenge” him ……
What the RNS has highlighted to me is that it appears that 70.53% of the shares are held by three groups of shareholders, giving them significant influence. These are MBU 57.67%, Bluestar 3.98% and the Directors 8.88%.
This is perilously close to 75% at which level the shareholders have significant control and in effect it is almost a privately held company.
The most likely event in my opinion, is for it to be initially taken totally private rather than sold to a third party.
I am sure that Adam will appear on the Sunday Roast to talk about the fund raise and they should chalke get him on this point. I hope I am wrong as I have a significant holding, but it is only now following the RNS that the penny has dropped. As for the dividend they obviously do not have enough cash to buy the equipment without a fund raise, or so it would appear, therefore the fabled dividend must be in doubt?
I've been thinking along those lines also since it was first mooted a little while back. BEN will be worth in excess of £1bn in my mind once its up and running at full capacity. It would cost an absolute fortune to set up another BEN from scratch what with rail line, infrastructure and now all the heavy machinery Inc a HWM which although purchased requiring repair will be worth much more once up and running, a good investment in my view as they are like rocking horse ****e. Mr MBU, AW and anyone caring to own shares in this company will be richly rewarded in my opinion. DYOR
Surely this is further increasing the attractiveness / viability of a sale to steel producer. The whole operation is becoming self sufficient with decreased contractor involvement and hired equipment.