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Many thanks for your explanation / Regards Lenin
Lenin
The table below was sourced from Corallian notifications of Capital as per link to Companies House.
https://find-and-update.company-information.service.gov.uk/company/09835991/filing-history
All Corallian Shareholders expect a return on their investment, and I was highlighting what would be “sufficiently attractive” for the Corallian Shareholders who bought at £2.20 ?
NPV10 at 50p a therm is history, as the price per therm has been over £1 for the last 12 months and today is £3.58, so I expect both parties want a fair deal.
Remember that Corallian Shareholders, of which RBD own 49.99%, would need to ratify a Share Purchase Agreement and the Purchaser would not want to get into a bidding war once the purchase price is in the public domain. This is a possibility if the proposed price is to low.
It’s tough sitting on your hands but slightly easier when you are sufficiently attractive in the current market with many participants that may bid.
Jack
Hi ..I do not wish for this to sound like a stupid question ...But when you state that the offer must be sufficiently attractive to the shareholders who joined the party at £2.20 ..to which shareholders are you referring to ?? Corallians ?? Obviously Reabold has not been at this price for a very long time .....I should state I have a reasonable holding here ,( in relation to my financial situation) ...but as I hold a number of other shares in other sectors in shareholder terms I would be classed as ...a jack off all trades but a master off none !!... An advanced many thanks if you find the time to reply...
SM,
Exactly. Buying and Selling businesses is not a 2 minute job and until such time as a RNS is issued the deal is still in play.
"The Corallian board of directors currently considers the offer sufficiently attractive for all shareholders to commence a sale process."
The total share subscriptions, plus the C Loan converting at £3.20, =7,935,249 or £12,190,196.
"sufficiently attractive for all Shareholders" must also include the Shareholders who joined the party at £2.20
Par Price..........Shares...............At Par..............@£3.20..............@£6.40.........@£12.80
£1.00...............1,225,000.......£1,225,000.......£3,920,000.......£7,840,000.......£15,680,000
£1.35...............1,917,771.......£2,588,991.......£6,136,867.....£12,273,734.......£24,547,469
£1.50...............2,257,665.......£3,386,498.......£7,224,528.....£14,449,056.......£28,898,112
£1.54...............1,089,155.......£1,677,299.......£3,485,296.......£6,970,592.......£13,941,184
£2.20...............1,051,095.......£2,312,409.......£3,363,504.......£6,727,008.......£13,454,016
TOTAL.............7,540,686.....£11,190,196.....£24,130,195.....£48,260,390.......£96,520,781
C Loan...............394,563.......£1,000,000.......£1,262,603........£1,262,603........£1,262,603
TOTAL..............7,935,249......£12,190,196......£25,392,798....£49,522,993....£97,783,384
and whatever price is achieved 50% goes to RBD !
Jack
As they said then Selfish, "The Corallian board of directors CURRENTLY considers the offer sufficiently attractive for all shareholders to commence a sale process. A further update will be provided in due course" must still the case. Even so, it's been a while since the 4 May RNS from which your quote is taken. Maybe I'm being too impatient as it's only been 3 months.
You answered your own question, GP. As you know, they only issue RNSs when circumstances change. The situation will be as they last said:
Corallian has received a non-binding offer from a credible party for the Potential Sale. The Board of Corallian is progressing negotiations with the potential purchaser, including the purchaser finalising its due diligence process. The Corallian board of directors currently considers the offer sufficiently attractive for all shareholders to commence a sale process. A further update will be provided in due course.
Still no news from our board on the price achieved for Victory, or even to confirm that it's still on track. In view of the much improved gas price, maybe they're holding our for a better "non-binding, conditional offer". With the lack of news, maybe it was more of an "informal proposal". Any thoughts?
When alls said & done I have to agree with selfish.
rodster I still think 50 mill as I always have. All I try to put across is nobody knows.
So, what does that mean? I reckon they've got a deal that ensures no more fundraises, and getting the new North Sea assets and West Newton to point of sale. Onwards and upwards.
"It's transformed us financially, or it will do"
Stephen Williams, on the sale of Victory, 10th May.
Stop hedging your bets uggy and tell us what sp you think. Whether your right or wrong who cares but stop this crap.
Whilst I would be delighted for us to achieve the NPV10 figure the term "sufficiently attractive" doesn't mean that imo.
There are too many moving parts to this for anyone to be able to give an accurate prediction ...not even the most professional day trader knows for sure which way a mainstream share will move within 24 hours ...but consider Reabold with a market cap off just over 26 million would have reached a crucial milestone in the life off the company with the selling off Victory ... Assuming Corallians statement that the offer is ... sufficiently attractive ...means that they did reach the minimum sale figure off 190 million plus ...with 50% going to Reabold then the share price must multi bag xxx times ..Maybe the final sales figure will surprise many to the upside ...especially as UK gas is virtually the new Gold in these current times we live in ... Both parties know this so the buyer should be keen to complete the offer ...
Thats like asking how long is a piece of string !
Evening all.
May I ask opinions on where the SP could be when the sale has gone through,
Cheers
Chris