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Having read the letters of support published on GMS’s website at
https://www.gmsuae.com/Offer I am not overly impressed at the level of support.
They all state “no CURRENT intention” of accepting the offer, non binding obligation, free to change intention at any time. The wording on most of them is basically identical, but two letters stand out as different :
- Noster Capital certainly aren’t happy with Seafox! Well worth a read. But interesting to note they refer repeatedly to the 18p/share Seafox paid for their original stake back in January 2019. Are they hinting that they would accept an offer closer to that price?
- secondly, Faisal Juma Khalfan Belhoul Alfalasi which specifically states he will not accept an offer below 20p (presumably indicating that he would accept 20p).
He seems to be one half of Ithmar Capital Partners so if he would accept 20p for his stake I assume the other half would too..
Of the 13 letters of support it’s interesting to. Note that 5 are from directors or ex-directors.
Duncan Anderson is the ex-CEO (who is actually still currently on gardening leave until 20th Aug)
Andrew Robertson is or was Finance Director
Mark Preston is or was Commercial Director
John Petticrew is or was Technical Director
And “Kasamar Holdings” (9.81%) letter is signed by Mo Bississo- who is a current non-exec Director.
I’d kind of expect directors to support the company. But these commitments are non binding.
GMS put out a release on Friday which hasn’t hit RNS yet (because Friday was a Bank Holiday in UK) but they published it on the section of the website about the offer.
https://www.gmsuae.com/wp-content/Document/Orderbook2020utilisation.pdf
As of 1pm today, Seafox holds approx 19% of GMS. With the total No of shares in circulation at 350m, I calculate that Seafox will need approximately another 35m shares (to give them a 30% stake), costing approx £3.5m. Am I right? If so that seems a cheap price to pay for a "controlling" share???
The only TR1 I can see for Seafox today is the one issued just befor 5pm which refers to yesterday’s buy (which took them to 16.39%).
They may have been buying today but We will have to wait a day or two for any relevant TR1 or Form 8.3 to be published to know for sure.
Seafox have been picking up stock at 8.5p today and I very much doubt they will be stopping there.
How much will they pay?
The number of shares purchased ( 9,388,689 ) is EXACTLY the number Lazard Asset Management declared they held in their OPD
I think we found the seller :)
"Accordingly, if Seafox were to make an offer, it would not able to make any offer above this price, subject to Rule 2.5 of the Code."
Can someone more knowledgeable be able to explain to me what above statement means as per RNS?
Does it mean Seafox cannot make an offer above 10p, and only some other party can go above this price?
What a great stock ...
RNS - we will buy you for 9 or 10p ..
The BOD then sit back and wait too see what happens.
1. Another higher hostile take over or potential white knight suitor..
2.Sea buy on the open market to get to 30% to trigger a hostile,.
ive got the comfy chair ....
10p coming
If the bids get to 80p I’ll be right behind you!!!!
We might indeed get to 80p but it won’t be as a result of a bid. It will be because the BOD have turned the company round. It will take a long time but I’m prepared to wait.
Bids at that effectively mean we get 10 times our money from these levels right? Or can something else happen?
I’m sticking with the turnaround plan and have confidence the board will deliver in time. As seafox increase their holding in the market I wonder what influence they can wield. I say keep them at arms length. I’m holding.
see the RNS Monday interesting are they also building a stake Saudis are coming oil storage is big commodity now i would say
Was off book via a market maker, interesting to see who was on the other side, there's been limited liquidity to build that position....
gms £1m buy at 10p - can buy at 7p - net assets 370m - mcap 20m - up for sale
Good news in RNS for long term holders. The banks have backed the board and their turnaround plan.
Unless the lenders force the board to take it Si
Well, they didn't cut and run with the offer at 18p and the Company in a far worse position, so I have to hope that they will be just a unsuccessful at 7p!
For anyone down a big amount, isn't this a massive opportunity to average down?
It doesn’t really matter what we think. It’s the financial backers opinion that matters. The question is whether they will force the board to accept the offer or agree to sign off on the proposed turnaround plan. I really hope they have enough confidence in the new board to decide on the latter. In truth the Seafox offer was perfectly timed to force the issue. Although they allegedly previously made a move to establish a holding at 18p they got fried. So they are unlikely to come up to that level. It’s poses a real dilemma for the funders. Do they cut and run or do they retain their faith in the board.
Mathew, perhaps need to bear in mind that virtually all the market is down today.
Disappointing that the ask hasn't at least moved up to the offer price. The current spread is a joke!