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Same
There will be a vote - I, for one will be voting against the recommended offer.
I paid 289 for this 3 years ago. Do I have to accept this low offer?
Siris is required, by not later than 5.00 p.m. on 17 May 2021, to either announce a firm intention to make an offer for the Company in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer for the Company.
The parties can agree to extend this deadline should they wish.
Why has this not dropped back to 130/40's given nothings been forthcoming on the bid? Does it hopefully imply somethings going on under the bonnet to agree a deal? Lets hope.
29-4-21 - BERENBERG RAISES EQUINITI PRICE TARGET TO 180 (110) PENCE - 'HOLD'
a shameless triumph of hindsight from Berenberg - presumably so they can add it to their stats that the price met their target?
I think this company has been under poor management for years and the expansion into the US was both poorly timed and poorly managed.
Like others I kicked myself for not selling at £3 but fortunately I only had c. 1% of portfolio here so stuck with it hoping that it might come good - it never did.
Given the last set of results and the tone from the BOD outlook (base more on hope than skill) plus the lack of dividend or dividend policy, left an open goal for a bidder (who they already knew was in the wings).
The old CEO went because the rest of the BOD had to be seen to sacrifice someone.
I posted in January when the sp was c. £1 that this surely had to be a top takeover candidate for 2021. Alas I didn't follow my own advice and fill my boots until the 3rd /4th ? approach was leaked to Sky.
https://www.londonstockexchange.com/news-article/EQN/equiniti-group-plc-revised-proposal/14954393
Once over £3 a share and even the current employee 3 year SAYE has 8 months left to run with an option price of £1.77.
So £1.80 represents an actual loss even to the employees that have contributed since 2018 - let alone those employees that 'believed' in the company enough to have been buying shares since EQN first floated in October '15 (floated at £1.52)
From March '17 to March '20 they have traded ABOVE £1.80 - in fact they've spent longer above £2 than below it.
So the reality is - just under 6 years since first floating they have effectively only risen 28p (probably less than inflation).
Any recommendation from 'The Board' to accept £1.80 is just a cop-out !! -
Makes you wonder if the old CEO was ousted for not wanting to sell so cheap and the new CEO accepted the job on the basis he'd agree to sell and bag a 'quick profit' in the process ??
Unless the board thinks they're going downhill rapidly and want to bail out they'd be better off waiting 'post covid' when the price will likely rise back to £2.50 on the strength of a general market rise.
So after a year of on/off discussions with Siris (4-5 approaches - not disclosed to shareholders) the BOD have managed to get another 10p (6%).
That tells you how effective they are really!
At least they have accepted they are for sale so, as others have said, it may attract other bidders or activist investors to come forward?
It is only low if another will pay more - given this is 5th or 6th offer , my guess is this is as good as it gets!
Does anyone else think this offer is too low? I would have thought around the £2 would have been fought for. Disappointed.
Maybe I'm just an impatient so-and-so but I would have thought the BOD would have come back with thoughts on the recent offer. Quite frankly, I would have hoped they would have come out with a 'completely unacceptably low offer which has been summarily dismissed....have a nice day' note. Maybe I'm delusional and naïve, too??
Doesn't quite work like that. If the BoD reject the offer, the shareholders have no say.
The BOD may well reject the 170p offer (if made) but their long suffering shareholders might well be willing to take it given that the BOD have completely failed over a prolonged period to achieve anything of note other than massive shareholder capital destruction.
it is only because the 3rd or 4th approach by Siris was leaked /picked up by Sky, that the SP here is no longer at or below £1
Anything above £3, the BoD will consider. £1.70 is an insult and it will be flatly rejected IMHO.
We've just coming out of a Global Pandemic.
EQN have spent the last quarter under temporary leadership
The new CEO has been in position barely a month - but already had a sizeable pot of shares before joining
Share awards to the BoD are mostly part of a 5 year incentive for the new CEO and options for the remaining directors.
Their clients include most of the FTSE 100
They process & manage share options / dividends / boardroom reporting - most companies have barely this service over the last 12 months.
Pre-pandemic the price was undervalued around £2.30
Inflation is coming - so prices will rise on that alone.
Sure they made a big mistake not reinstating some kind of dividend, no matter how small, but that will come and the markets will regain some confidence when their client base is more active again - instead of preserving capital.
Any bids below £2.20 will almost certainly be 'considered' then rejected.
Any bids below £2 will be the source of major amusement to the BoD and employees
Personally - I think £2.75 might be considered if the board want new jobs elsewhere or are close to retirement, but I will certainly be voting NO DEAL below £3. Between £3 & £4 I'll give it some serious thought.
After all - most of the board & employees probably paid close to £2.00 for their shares.
What do others consider would be a fair/achievable take out price for EQN by Siris or a counter-bidder?
Many have known this is on the block for months and others are bound to be looking at it.
That can only be a good thing.
Yes agree. Tend to think that the BoD will ignore this too and evaluate it as not in the best interests. Tempted to trim a bit here tbh but the price is perking up again so expect another bidder of improved offer.
Game on.
The BOD have zero credibility to defend against a bid, whether this or another one.
They've known that this suitor has been in the wings for months (but didn't disclose the previous approaches to the market) and the recent results provided them the best opportunity to come up with some reason as to why they should remain in charge.
Despite awarding themselves more options - they couldn't even see themselves to reinstating the dividend, not even a token amount.
They have singularly failed to demonstrate any management ability or confidence in being able to continue.
Their only hope now is to attract a white knight at a higher price, but I doubt they could organise that - they're probably too busy awarding themselves more options.
Usually settles below offer - I expect counterbids as 170p is too cheap but still nice move up.
yes, but depends whether this starts a bidding war.
Is 170p the opening shot or, given the recent results, a full price ?
I suspect there may be more to come but I will certainly lighten my position at 170p
Shouldn't the SP Move permanently to 170p, current mcap is crazy when PEs are willing to pay £600m!
Diabolical performance and shareholder capital destruction but 2 million shares awarded today to the BOD!
all aboard the gravy train!
Thought same and averaged down at yesterday's low which for now seems to have been a fantastic trade. I started racking small speculative at 147-1k & 133 -1k and now have a small holding 10k averaging 124p.
intend to reduce holding and trade to average sub £1 to hold and build.
So onwards and upwards hopefully.
GLA