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We (and I don't just mean retail) believe there is a better offer on the table.
We've made clear to Ganfeng that we want them to add the cash on the books. At present, they would need to offer that to EVERYONE.
Following the closing of the offer - They then only need to make an offer to the remaining people. At this point, they will probably attempt to proportion the cash on the books in relation to the number of people left.
That's why they're trying to get as many people in at 67.5p + 0.2358 Zinnwald shares now.
£100 Million across each share is roughly 26p a share on top of the current offer. They still want us all out.
They want to be the world's number 1 Lithium producer, and you can't do that be looking weak. Equally, you're in the spotlight, too.
Their priority is to attain 100% control, and they cannot do this with disgruntled shareholders - if they want us out, they will have to pay us.
Thanks for sharing that @Dee. You didn't have to. Makes sense.
Dee - they would have to wait 12 months after the closing of the offer being withdrawn
https://uk.practicallaw.thomsonreuters.com/8-502-2187?originationContext=document&transitionType=DocumentItem&contextData=(sc.Default)&ppcid=7621337b9a834e1eb01c7453d4ae949b&comp=pluk#co_anchor_a701724
21. If a bidder fails to obtain control of the target, are there any restrictions on it launching a new offer or buying shares in the target?
For 12 months after the date on which an offer is withdrawn or lapses, a bidder and its concert parties cannot, among other things, launch a new offer or make a statement raising or confirming the possibility that an offer may be made.
Key phrase here: "except with the consent of the Takeover Panel"
They consent to everything.
"Where an offer is declared unconditional in all respects (and so the bidder, together with any concert parties, holds more than 50% of the target company's voting shares) but the bidder fails to acquire all of the outstanding shares, except with the consent of the Takeover Panel, for a period of six months from closing the original offer a bidder, and its concert parties, cannot acquire further shares on terms that are more favourable than those that were available under the bidder's original offer or make any special deal with favourable conditions with any of the minority shareholders (Rule 35.3, Code)."
For some reason I find this difficult to follow. Does it mean:
WHERE an offer is declared unconditional in all respects (and so the bidder, together with any concert parties, holds more than 50% of the target company's voting shares) but the bidder fails to acquire all of the outstanding shares,
THEN for a period of six months from closing the original offer a bidder, and its concert parties, cannot acquire further shares on terms that are more favourable than those that were available under the bidder's original offer or make any special deal with favourable conditions with any of the minority shareholders (Rule 35.3, Code)
UNLESS such special deal is given the consent of the Takeover Panel.
This is one interpretation, but another interpretation is that the offer can be revised which would not constitute a new offer...
Gotcha, thanks Joe
I don’t believe Gf can pay higher for stock for next 6months if the company remains listed?
If so they would have to come back to previous holders…sorry but I can’t see anyway the panel special approving it for minority at all. It’s not in their interest to do so, and you talk about gf in public eye…that’s the last thing the panel needs.
Think really clutching at straws there….genuinely I hope those remaining get a better deal you deserve it.
My assumptions for best outcome are they can buy back stock via bcn treasury as that’s company approval not Gf….and delisting id assume restrictions for stock purchases for 6 months maybe? Not sure how it works there.
Tricki with you on a lot of those calls, cusn, cl, znwd all on the adding list once this clears, Bradda might add more in also.
Thesis hasn’t changed. Right call on bcn wrong outcome any way you cut it, I had to average down hard in bcn even at 15/16p during covid to make returns I did and so to me yes it was a bad investment regardless of the final returns.
are you all saying that once all retail have gone… ganfeng can’t buy bcn shares on the open market… after the offer has been declared unconditional… whilst bcn are still a plc… up to the point ganfeng close the offer… (when they’ve got the 90% they need to squeeze)…
If I've understood this, the 26p represents a distribution of book cash over all the shareholders. If 75% accept the offer now but 25% don't, could this eventually mean 3 x 26p = 78p for the non-acceptors only as the cost of buying them out?
Yep tc way I see it as the acquirer I do not believe they can buy shares on the open market, it’s got nothing to do with retail being out or not and solely from my understanding on takeover code post a formal takeover bid that’s been accepted.
Not sure why you are referencing retail like they are the yardstick here? Rules are there to protect retail so if all retail was out and gf did a deal with Weiss wouldn’t be fair would it? I’d expect many retail investors want the price Weiss get and panel and everyone is there to protect retail.
They pay a higher price in 6 month window they owe that price to all shareholders previously.
Don’t know how it works when becomes private but delisting and becoming private takes time won’t be a 2 week window.
90% is just a clean up.
Not how I see it Joe, you are talking like the 25% are the rulers here?
If they have book cash why would Gf give it to the 25% left?
Being fair to all shareholders means you give it to Gf 75% holdings also. It’s still cheaper for gf to distribute that cash to everybody now then give it all to 25%.
Plus why? They only need to buy out 15% to get to 90% anyway and I’d assume that gap getting smaller.
Genuinely I think good chance you get more holding on and hoping, but let’s face it it’s hope over being hugely sensible.
We got sold down the river by bod and m&g.
If I've understood this, the 26p represents a distribution of book cash over all the shareholders. If 75% accept the offer now but 25% don't, could this eventually mean 3 x 26p = 78p for the non-acceptors only as the cost of buying them out?
@Fozdog Totally agree with you that is better to have the cash now and seek new opportunities then wait for six or more months for something that may or may not happen. Besides mining I want to invest in nano technology ...any ideas?
Fozdog
I have a slice of SAV and EMH in Europe too. LAC, FL and PLL over the pond.
Kluck, I do looked at this stuff a year ago on my to do list!
Znwd holdings reports id assume start coming out today. Looks ripe to recover
@Fozdog. I'm inclined to agree with you.
Apologies for posting twice. Finger trouble.