Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
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https://www.ft.com/content/3555c4a1-5a71-45a2-83a4-6edd81703d9c
One word of warning. No deal has yet been agreed. There is no ‘floor price’ as some people speak of. There is only that if there is an 100% chance the deal goes through. I have nothing to suggest it won’t, but the market is telling me that it thinks that the deal will probably complete at 35p but there is more downside risk of the deal not completing than upside potential of a last minute higher rival bid.
Some may be tempted to buy now for what may be seen as an easy 7% gain between the share price and offer price. Nobody leaves 7% on the table these days for no risk. It may be a gamble worth taking and will probably work, but if it doesn’t then the board have made it pretty clear that going alone isn’t a long term strategy and I can’t see many other rival bids.
Happier with 35p than 0 though.
Late to the party this morning, had a few too many last night, looks like someone undid my belt buckle but kept their hands in my pockets before they let my trousers dropped to the floor......
To break even I needed another 10% (38.85p) but there will be a lot of long term holders suffering.
What strikes me from the RNS is the BOD seem to be indicating they don’t think the debt is sustainable going forward, yet most on the BB (self included) felt the BOD could go alone and refinance if a low ball offer. The cash flow looked to support the debt and provide monies to pay down, more so with the div suspended. I feel as though there is something else I’m missing. Shame wasn’t another extension, the Covid news might of lifted another 10%...hey ho ho ho.
If this gets approved, then yes. Either sell beforehand but you won’t just be able to hold on to them. The PE company will acquire 100% of share capital.
Watkins this is my understanding.
Stage 1 Offer of 35p (which hasn’t happened yet.)
Stage 2 Board has to accept the offer. Again they cant until the offer is solid. They have however implied that they will accept it.
Stage 3 Shareholders (you and I?) have to agree to it BUT they only need a certain % (75?) to agree so could bypass us.
Stage 4 If agreed then shares will be suspended and we eventually (4 weeks?) would get our £.
At any point there could be a counter-bid or no bid.
Hope this helps and again it is just my opinion but I’m no expert.
We are not a happy bunch
Wow I wonder what AA employee morale is now, given that all the AA employees that put their wages into the Share Scheme with high averages will now get shafted and have their shares bought out from under them at 35p? Must be morale on the floor on the shop floor
If the deal gets passed by the shareholders and you carry on holding then when the time comes you will be paid 35p the offer price.
But if the sp goes up or down over the next few weeks from 30p -35p+ because peaple think there could be another higher bid , then you can just sell in the market at the price you get offered. it's up to you simple.
What so everyone will automatically be cashed out at 35p regardless, and given no option to sell / hold ourselves. Is that what yous are saying?
what I said the other day.
This is one big game run by very clever greedy people and we are the players.
In the City they call us Cannon Fodder.
Be strong. They want you to sell IMO.
I just tried to sell 150,000 out of curiosity and got a price straightaway. Didn’t sell of course I’m going nowhere.
What this offer does do is allow anyone interested in making a counter offer the opportunity to gauge exactly what they need to do.
Will finish in the blue today once the city understands what could happen.
If they are only going to invest an extra £300+m now, why don't AA just raise that extra money themselves even with extra shares, after all we only have 680m shares on issue now, as long as they DON'T do a consolidation.
We would be in a far better place in 6 months with a much higher sp.
Effectively yes, we will receive 35p per share. The PE company will acquire 100% of the issued share capital and , as in the name, the holding will become Private and therefore no longer listed, quoted or traded on the exchange.
The shares will still be in existence, just all in the hands of the private equity company.
Hi
For the uneducated ones amongst us could someone confirm what will happen if the bid is accepted ?
On the agreed sale date will we just be paid out @ 35p for our shares automatically ?
Will the AA be delisted from the exchange ?
Thanks
What the Consortium does with the company after they've paid us off is none of our business.
Was any shorters banking on another extension??
:))))
No point selling now. 35p is the floor... Bid will be in tomorrow. Worst case you walk with circa 10% more than the current sp. Always chance of counter bid. Don't give up the shares having held on this long.
Thats not what will happen unfortunately... it will be a different entity with the same brand name.
Didn't think it would last long.
Don't think I have ever seen a spread of 373%
So the Proposal being discussed with the Consortium includes an intention to also invest approximately £380 million into the Company to facilitate debt reduction and specifically to support a refinancing of £541 million of the existing Class B2 Secured Notes maturing in July 2022 and £372 million Class A5 Notes maturing in January 2022.
Does that mean they are only going to invest £380m now and then in 2022 the rest. or what.Still so many questions
Surely if they buy all / most of the shares they will still carry on trading and listed as AA otherwise what's the point in buying the name.
In that case , if they put in all that extra cash and don't issue more shares by dilution then surely the sp shoulf shoot up in price, maybe £1.
@ taverham
Thanks