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or is it a rollover now ganfeng have shown their teeth and decided they’re having it anyway…
Gotta say TC I'm now begrudgingly voting to accept with the relatively small holding I have here (15k) & keeping my fingers crossed they'll need to be a bit more forthcoming for the 30% of the MEX/MEG JV's owned by KDNC .... should've sold when it hit £1.50+ but "that's what greed does for you" feeling for all those who thought they had a pretty much nailed on £5 per all those years ago but then "that's AIM & an AIM BoD for you" - AIM Co PI's getting shafted who'd've think it eh!!!
ganfeng’s new takeover milestones…
100%… rip bcn…
>90%… compulsory purchase…
>82.22%… possible revert back to a scheme…
>75%… de-list…
>50%… control…
28.88%… ganfeng’s starter for 10 (concession that is)…
i see an rns… and a glimmer of hope that ganfeng can maybe see a way of increasing their offer a little… if needed… folding your full house on the turn… might have been a little premature…
Tomcat I think you need to back that up with a view.
Where you think the offer is or has a chance of getting increased?
Let’s be clear with what you are claiming here - I believe as a poster here said last week said they had till the 10th to make their decision?
So you need to be clear to them why they should say no on the 10th and why it’s premature? Or anyone else that has a deadline with their brokers please enlighten why it’s premature?
Yes they could reduce the cash and pay it out as dividend as a way around this.
Do I think they will ? I don’t, sure Maybe there’s some chance a little at end for some shareholders left over.
The rns also clearly states their advisers have agreed this is the right and good deal.
I personally am holding out till last date but this makes no difference to fact I’ll be voting yes day before my broker deadline.
So please be fair to posters with why it’s premature and where this increase in price will come from?
i hadn’t read the full release when i posted below… only the rns… but i have now… and it looks even better than i originally thought… ;)
tomcat - How do you think Ganfeng would increase their offer when the board were ecstatic about the first one ??
looks to me that they’re in the process of facilitating another method of distributing bcn profits to shareholders… by cancelling the share premium account… valued on 31aug21 at $90,954,210…
doing the math… it takes the offer to just over 90p… but if you throw in ganfeng’s portions… i get it bob on £1… (all my own unverified math and forex = 0.72 as it was yesterday)… i’d like to vote for the cancellation of the share premium account… but on 1 condition… it’s value is distributed to shareholders during the sale of bcn to ganfeng… ;)
Tomcat, isn't the reason for cancelling the Share Premium Reserve so they can distribute the Zinnwald shares? If so, won't the value of those shares come out of the $90m figure and thereby reduce your 90p calculation to about 80p?
On a separate point has anyone actually received any documents to accept or decline the offer? I have shares split between 2 platforms (ISA & SIPP) and neither organisation has received anything yet?
i’ve now decided to reject the current offer with all my holdings… but i would pledge my vote for a scheme… if ganfeng throw in their share of the bcn profits on distribution and their value of zwld shares into the offer… preferably all cash… ganfeng can keep all of the 90,954,210 zwld shares bcn currently hold… if that’s doable…
as the previous post below… i make that £1… without ganfeng having to go back to their shareholders and ask for more…
@Manny - No voting form yet for the formal offer, I'm with ii, I find them to be pretty good. As posted below, ii have provided me with proxy voting forms for the mechanics of the ZNWD share re-distribution. If I am reading correctly, the formal offer proxy voting forms should be circulated within 28 days of the offer RNS. They may be waiting to get this ZNWD element voted thru first, because without it the offer doesn't seem do-able?
Yes Manny, that's my understanding. There cannot be a divi made (which the ZNWD share distribution is) without cancelling the share premium reserve, been through that with Ariana recently as well. I personally read it as a necessity and don't read it as a precursor to an increased bid. Put yourself in GFs shoes - why would they increase the bid when its almost certainly in the bag?
Contacted iWeb this morning, the basically said 'Eh?'. I may need to contact them again I suspect when do we have to vote on the offer?
Well I’m totally against that tomcat, I don’t want Gf anywhere near znwd so I have 0
Interest in them settling for cash over znwd shares.
Yes they can throw in their shares of znwd as a final chip and have nothing to do with znwd.
I don’t agree with your analysis below at all regarding share premium, it’s a mechanic rather than a necessity to offer more money.
You might well get more for your shares holding on and good luck to you, however I am still 100% voting yes unless I see something more material that forces Gf to offer more or something around govts and resources.
Right now with a bod set on this going through I have it at 99.99% they will get to over 50% to make it unconditional.
I expect Cornish lithium could come back to market, much rather take my money from here and go there later on this year.
If you accept the offer, is that it , they take your shares. Even if 35% or 40% say no. And then Ganfeng have too find a way to get the remainder with a scheme or higher offer for those that hold out.
yes… it’s unconditional at just 50%… so they are clearly going to take it regardless… it’s just harder for them this way… and i think they will be happier to change back to a scheme if possible…
‘the distributable reserves arising on the reduction will support the company’s ability to distribute value to it’s shareholders in relation to the distribution, should circumstances in the future make it desirable to do so’…
there’s not much time left for the company to distribute that value to it’s shareholders… before ganfeng complete their takeover… and as an equal shareholder to everyone else who owns bcn shares… i would think my share of those profits on 31aug21 are rightfully mine anyway… if you’re happy to let ganfeng have that in the deal they’ve offered… now that you know it’s value and availability to distribute it… that’s your prerogative… i think there could be a point where it will be desirable for them to use it to help get the deal over the line… in the easiest and quickest way possible…
Anyone have an idea about who was buying and selling shares in the week after the offer announcement? I see about 40 million trading, far above the normal daily volume. I assumed it was Ganfeng, but wouldn't they have to file an 8-point-something on it by now? So maybe institutions are paying cash to get back cash and ZNWD in a few months.
I'm thinking of buying some BCN, post-ZNWD distribution, when the price should drop to 60p. Then reject the offer (you know and I know there is no "vote," but others here seem to be in the dark about this) and see what happens.
@Tomcat - if u can talk it up to 80p I'll be more than pleased, but I think we're just going to get what's been stated : 67.5p +0.23ZNWD shares for each BCN we own. From the offer RNS :
-''If, after the date of this Announcement and before the Effective Date, any dividend and/or other distribution and/or other return of capital is announced, declared, made or paid or becomes payable in respect of the Bacanora Shares, other than the Zinnwald Distribution, Ganfeng reserves the right to reduce the offer price by an amount up to the amount of such dividend and/or distribution and/or return of capital so announced, declared, made, paid or payable. If Ganfeng exercises this right or makes such a reduction in respect of a dividend and/or other distribution and/or return of capital, Bacanora Shareholders will be entitled to receive and retain that dividend and/or distribution and/or return of capital. Any exercise by Ganfeng of its right referred to in this paragraph shall be subject of an announcement and, for the avoidance of doubt, shall not constitute a revision or variation to the terms of the Offer.''
@BorderBob - check the RNS's : a couple of institutions have notified that they've gone above 1%. I agree with u, that it would be assumed GF would be buying at these levels, but no notifications from them thus far.
Jam, I’m confused why would Gf be buying at these levels in the open market?
It takes 0.2% share for them to go over 29% and trigger an rns.
They then are locked into say 67p price paid and if they did that first thing everyone will do is reject the deal and it gets bid up. I’d 100% reject if they did that.
The moment they pay these prices that will be the highest they’ve paid and anchor them for next 12 months.
They then can’t come back in and pay anything lower than that if they want to acquire the company.
It’s the worst option and pointless option for them. They know they have 50% in the bag!
It’s the process from there and the cat and mouse game is where they can get to in % terms.
Tomcat is calling their bluff, he thinks they are desperate for 100% and if can land at right % point they will just keep increasing offer via an effective “profit sharing” scheme.
I think he’s got an ok chance but risk / reward I need more than that to suffer here longer!!
yep… i read that… and it means that any increase in the offer as a result of the distribution… is at the sole discretion of ganfeng… it’ll take a bit more than talk from me… it needs enough shareholders to stick together and make it happen… or at least have a go…
@Foz The reason I'd assume them to be buying is because it would be cheaper for them. Instead of paying us 67.5p + the ZNWDs for each share, they just pay market rate (67p....or whatever) and for those shares they buy, they get to keep more ZNWD for themselves. I take your point about having to make an offer if going above 30%, but they've already made an offer, so does this rule still apply? .....complicated , isn't it ?
My understanding John would be that it doesn’t do them any favours and it anchors them if they didn’t get the required 50%. If they don’t get 50% it fails. So buying on the open market at 67 or even to buy anything worthwhile could / would be above that is pointless for them.
They don’t need to do anything here, they will get intentions way before their deadline. Why go and make it harder for yourself? If they have 74% intentions then maybe they go and buy 1%…but I still think that would be hard to do from a regulatory standpoint point.
Remember they have a letter of intention from m&g do they have information that would indicate others? For me if they have other potential others or anything from brokers saying x % said yes and then went and bought on open market they are doing so with inside information.
They simply don’t need to. They have 50% in the bag it’s the amount they get to post that.
For tomcats point if I had faith the 34% PIs would stick together it’s tempting to have a go, but like you John I’m absolutely drained of this company and quite frankly I’m not playing cat & mouse with a company where our strongest player in m&g folded. I can’t sell so have to wait regardless and will leave my intention right till last minute but it’s hard to want to remain here after all the years it’s just been disappointment after disappointment and we fell at last hurdle.
If I had any money in m&g funds I’d remove it on the back of this and I’ll never buy their funds as a result.
they need 53.34% to accept the offer… giving them a total 82.22%… to go to court and get it approved under a scheme… that’s 17.78% to reject the offer / default… not 34% as is claimed in the post below… nothing has changed in this respect… except that defaults now count as a reject… so any benefit to us that we had previously from a low turnout in a scheme vote… is now lost… but we do get what would have been the none / can’t votes…
the answer to the questions why ganfeng are not increasing their holdings right now is mainly because… if they did… when they revert back to the scheme… the 82.22% total that they need would go up… and the 17.78% votes required to block it would come down…