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Hi Jurado, Tim Cornelius is very firm that tidal is still a primary focus. http://www.proactiveinvestors.co.uk/companies/stocktube/9273/atlantis-resources-expecting-to-start-trading-as-simec-atlantis-energy-within-weeks--9273.html Quite surprised we opened so low this morning considering the progress over the last 6 months. Good steady rise today though.
Much as the power station seems an exciting project, I was attracted here by the potential of tidal. I have some slight concern that the new business may effectively leave that somewhat on the back burner - any LTHs got views on this?
Mcco..... it�s not over until the fat bloke sings.... have a feeling by close this fat bloke will be tap dancing as well as singing.... another couple of RNS�s today and through the week.
This company seems to good to be true... What's the catch?
We're both wrong so far, Wenglish! I reckon anything under 45p is a good buying opportunity.
I�m hoping it will rocket, sky�s the limit here.
Interesting to see how we open this morning. 45p plus.
What busy boys they are! as is always the case the buyers of the placed shares were already lined up and the deal is complete. No news yet as to who has bought but unless there are lots of small buyers(very very unlikely !)we will see holding RNS's soon. the new total of shares in the RNS is 366 m, so that includes all those issued to GFG for their 49.9% share. the placing therefore introduces new? owners for ~15% of the whole Co.So when trading starts on 15 june the market cap will be around �128m not far off treble the size when suspended. That's all good, to borrow 50% of the cost of converting Uskmouth(�185)ie �90 mill plus, the bigger the market cap the better. A company borrowing more than its market cap (even with a big brother !) is going to struggle MC �100m + will have a debt:cap ratio of <1. jay hambro , the new guy is VERY well connected, with lots of city contacts , so the profile of Simec ARl will be high. Looking very positive.
Morning casapinos. Thanks for doing a deep dive into this as it is hard to fathom what is going on currently. At least the placing price is not discounted to the current suspended price so we probably haven't been sold down the river. If we see a wave of selling when this relists and the SP sinks then I won;t be the only one underwater in my investment.
The placing of 57m shares at 35p to raise �20 mill, the good news is no discount so the buyers are paying market rate always a positive, the enlarged co. will have an initial market cap of �64 mill on re-admission.the bookbuild to complete today so the buyers are all lined up and I think, for probity should not include GFG or Gupta himself (otherwise the 49% is screwed) the power purchase agreements are : Most to a GFG company at �30.90/MWH with an uplift limited to CPI/2 Some to a joint venture with the Dutch recycling group at �130/MWH with an uplift of CPI so a very favourable rate and terms to GFG!!! A pellet source price of �4/tonne for 875k tonnes The power station to operate from q4 2020 after a spend of �185 mill funded by "505 debt , the rest in grants and equity, so afurthe (open offer?) equity raise needed with a few months. Two board members from GFG dependent upon there share holding(implies the likelihood/possibility of selling?) The new entity appears to have got the powerstation for half of the new MC ie �32 mill in return for half of a company worth �44 mill when the deal was struck so, on the face of it , a good deal. I will be back with an analysis of the revenues , profits etc of the pelletised power station base on the figs quoted later in the day (time permitting)
I don't see it as I complimentary. He has royal recognition. Has turned round many multi million pound derelict energy plants, to the tune of £9bn global turnover. There is a bit about loaning money and gov burseries theyve collected for projects and may need in the future. It's a bit lazy to say taxpayers will foot the bill as some of the empire is now self sufficient and turning over billions so the article doesn't make all that much sense. The brothers buisness sounds a bit unsavoury out in Nigeria but it's independent of simec and nothing to to with anything atlantis or simec are involved with.yes his father owns the power plant were merging with but the last one they purchasesd went from 1.2m turnover to 12.2m very quickly once they got things going, so that bodes well for uksmouth. The tired profits comments about steel being hard to make profits in is misleading as he's now moving into renewables this acquisition nothing to do with steel plants. Didn't realise he owned a bank. Fair play he's obviously doing something right and as far as the African deals and purchases not being that transparent it's a different set of rules here. Especially if his ambition is ftse 250 for atlantis
Todays ST business section has a full page piece about Sanjeev Gupta,the man behind GFG and Simec ,should you want to read it , it's titled "The steel tycoon who rose without trace " I won't post a copy because i respect copyright laws , but will offer a few quotes and must say, it's not very complimentary. Quotes I have selected are : "Guptas empire is held under the loosely defined Gupta family group(GFG).....It has aspirations to float on the stock market" My comment - is this to be achieved by the back-door method of the ARL "merger"? "Gupta is believed to have spent �20 m on a stake in along delayed tidal power project....." is this just inaccurate journalism? or is there some other explanation? " ...(in 2014)his father bought the neighbouring Uskmouth coal power station....???" So is Simec/ARL buying Uskmouth from his father???? if so WTF?? As I say, the full page article has a lot of detail, some of it perhaps inaccurate , some of it quite perturbing and all of it in less than glowing terms. I will dig some more, and intend to attempt to contact the author and I will report back if I find anything more.
Still I think us long termers at least deserved a one off Divi payment or something to respect the faith we had in ARL. Before all this. Or even a complimentary share or two in the new simic. Just a little something...
What will happen is as follows the stock will return to the market and after some volatility the SP will settle , I believe , sharply higher. An rns (on that day or very shortly after) will set out the detailed terms of the deal, and perhaps arrangements for a placing/ open offer and the date for an EGM to vote on acceptance. The egm will take place and after a positive vote the revised company structure will be implemented We will then have shares in a much larger company and depending on whether a large placing (underwritten by a commitment from Simec) occurs we will own a more valuable but much less percentage wise part of the new company. It would then be reasonable to expect , over the rest of this year , a flurry of rns's relating to the deals of which we have seen "teasers", the more of these which are implemented the more the value of the company (though not, necessarily our share )rises
Agreed sbuild on the ceo. It�s all new to me being in this situation to.
That would be lovely but there's no chance of it unfortunately. Just wondering how it works as I thought we would have a vote about the merger but sounds like it's going ahead/already done? Or will the shares relist then that come afterwards? Don't really know too much about this situation as not seen it before. Quite like the ceo cornelius makes a change from the usual generic aim soundbite managers. Seems quite shrewd and capable of pushing things forward.
The opportunity to double down at least if already invested I think personally.
I�m waiting for the opening bell, having a cup of tea then banking some more of these with the spare bit of cash I have.. GLA.
Wonder if your be able to get back in at 35p or will the mm's open it higher. Very interesting. My gut feeling is I should of gone in alot heavier here. Didn't see this acquisition Happening and had no idea the behemoth size they intend to create of there company and ambitions
Thanks for the link. All looks positive and hopefully only a few weeks before we can get trading again.