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Rastuss, they would need to acquire 75% to be able to delist the company. However, that is not enough to make the remaining shareholders sell their shares; you need to accumulate 90% to be able to do that.
In theory, yes they could delist with 75% in their hands, but in practice they’d be stupid to do that, as the minorities can then also cause a lot of pain to them. For example, you only need 5% holding to requisition a general meeting in UK. Minorities can become a real and permanent pain in the neck for them. KAZ is a UK company, not Kazakhstani, and minorities are well protected under English law. Nova wouldn’t want to end up in this situation just as much as we don’t, so the best course of action for them is to increase the offer and get to at least 90% before delisting.
Think about it - the reason they didn’t launch a takeover offer to buy at leat 75% but instead chose a much more difficult scheme of arrangement (which needs 75% of all of us to agree) is precisely because they fear getting just over 75% but not enough to push everyone out and then be stuck with a minority and all the associated pain.
IMHO it’s a no brainer, we’ve got nothing to lose by voting the scheme of arrangement down. At the very least there will be a chance to tender shares into a takeover offer, even if they then launch it at the same price of 640p, but I’m sure they’d raise the bid, as they would want to get 90% minimum.
Vote against and good luck everyone!
Thanks for your view Shakhtar. Fair comments, i certainly agree, that cooper is going to rise due to Chinese demand, the proximity of the KAZ mines to that market is all good. I hope you are right about the offering being increased, but you also state that there is a campaign to keep the shareprice down, driven by the 40% ownership. I am in the fortunate position of sitting on some healthy Kaz profits, the fact that the SP drifts over the 640 (as it did today) implies that the market feels the offer should be raised. My concern is how much the 40% is going to warp the market in their favour.