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Well, another fact: sxx is trading slightly above the offer price for a second day, what's cooking there? someone (apart from shorters) knows again more than everyone else around? who's quietly building position and why?
There is so much hidden from private investors it is beyond joke !!. There has to be some sort of meeting with BOD prior to their proposed meeting which is to be announced. Suggest joining Sharesoc group, they need 100 members with 100 or more shares to try and set up a meeting. Don't sell and give up just yet...really can't understand why they did not do 3rd fund raising as last time around at 15p they oversubscribed....
Yuri.F. I agree totally. Imagine if they had taken the £680 million ( forget the % deal) and the share price went back to 10p! Then the rest could have been another issue of shares. They would probably have got away with5billion or so. I think we can guess that the deal with AA was sorted and was never going to change. Therefore no other options were going to be looked at. I suppose they will swear to their graves that they made every reasonable effort. Even a thicko like me can see they didn’t.
JiffyBag - I don't mind against more of it, otherwise it would be like bees going for strike against honey..
All I'm saying - if another party being kicked out of competition by sxx BoD - they wouldn't be very happy to miss such opportunity and normally would gladly join public outcry with current shareholders..
It is absolutely different story if BoD while searching for other options intentionally puts unrealistic conditions to sabotage process in favor of pre-selected bidder.
I don't really understand why they haven't tried to consolidate different smaller parties into one (helping them) for TO (or debt-financing, or hybrid via partial new equity raise) to ensure better outcome/competition and gradual TO process (in tranches), it would be win-win (and it's often relatively simple to arrange some sort of control/commitment/enforcement via deposit of couple of dozen mills in case if other side just tries to put sxx to a edge of a cliff by giving false promises)..
That's where transparency is missing to judge about BoD actions (if they were truly left no stone unturned or just played on formal technicality to avoid litigation if their tacit game faces strong opposition)
Yuri,
With respect Re: IMO - 'if there would be any party offering better deal (and secretly rejected by sxx BoD against shareholders interests) - they would be shouting about it on all corners already... (unless this card is reserved to play at last moment).'
That's where you and I differ I'm afraid.
So far in reading in between the lines, discussion has been taking place with AA for some 9 months now (Un-beknown to SXX share holders) .
So why has the potential debt financing proposal not been aired until now?
Yes, you are in profit as you say, well played, but what would your opinion be given the alternative finance revelations? :O)
IMO - if there would be any party offering better deal (and secretly rejected by sxx BoD against shareholders interests) - they would be shouting about it on all corners already... (unless this card is reserved to play at last moment).
JB - it's a solvency/liquidity crisis, unless shareholders can bail company out (but we/they definitely can't) it's game over very soon (continuity squeezed, sxx won't have money to pay bills)
company is already running with empty fuel tank on remaining evaporated gas only.. there are too postponed/delayed payments queued (via arrangements with suppliers) and you can't really suspend operations easily without additional costs and significant impact on financial efficiency (equipment disassembly, redundancies, contractual termination fees, etc.)
not even starting rapidly approaching millions of obligations on coupon bond payments..
There should be material alternative for better outcome (so far there's not), not imaginary one as many here thinking wishfully..
Q4. Why is the company so keen to sidestep retail investors? The talk about administration whilst realistic and the most obvious push to agree to a AA takeover, should not preclude viable alternative discussions.
Q5. The Risk to current holders is high, agreed as acceptance of 5.5 p versus 0p is in itself at risk, however whilst there is a small chance of existing holders being in the game if the potential debt financing proposal from a consortium was pursued with vigour then there may well be light at the end of the tunnel. The sad fact is we have up to now no way of ascertaing it's merits other than the BOD's say so.
I for one do not believe what the BOD's are telling us, sorry, but I don't.
'As at 31 December 2019, Sirius had approximately £59.9 million of unrestricted cash, which was broadly in line with the expected capital spend when the strategic review was announced on 17 September 2019. Unless Sirius is able to secure additional funding or a merger or acquisition transaction involving Sirius by the end of March 2020 or soon thereafter, the Sirius Board would be required to place Sirius into administration or liquidation, which could result in Shareholders losing all of their investment in Sirius.
In conjunction with this review, Anglo American actively explored an interest in Sirius during Q4 2019. On 6 January 2020 the Sirius Board received a non-binding indicative proposal from Anglo American expressing an interest in acquiring Sirius. On 8 January 2020, Sirius announced that it was in advanced discussions with Anglo American regarding a possible all-cash offer of 5.50 pence per Sirius Share for the entire issued, and to be issued, share capital of Sirius. Following receipt of the Anglo American proposal, the Sirius Board carefully assessed the merits of the proposal against the potential alternative options from other parties involved in the ongoing strategic investor and debt financing processes and also in light of the Sirius Group's current and expected liquidity position.
The most advanced alternative proposal was a potential debt financing proposal from a consortium of financial investors. In December 2019, Sirius received a non-binding term sheet from the consortium to form the basis of a US$680 million funding package to cover the initial scope of work. On 9 January 2020, Sirius received a revised non-binding term sheet from the consortium. The Sirius Board reviewed the proposed terms and conditions, together with its advisers, and concluded that the consortium's conditions and the time it would take to meet such conditions were such that there is a very material risk that the overall funding package would not be implementable by the end of March 2020. Based on the backdrop of the search for a standalone funding solution undertaken over the last 4 months and the extensive discussions held during that timeframe, the Sirius Board believes that, at this time, there is not likely to be an alternative to the Acquisition other than administration or liquidation.'
Q1. We could theoretically survive imo if a 'Freeze' on all activities was made now in order to explore the potential debt financing proposal from a consortium of financial investors?
Q2. Why were Sirius Share Holders not informed of this until now?
Q3. From my understanding, a GM may be called if 5% of shareholders request it to question and appraise the potential debt financing proposal. After all, I do actually think we are at the very least owed that explanation, do you think same?