Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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@CBax
I’m probably out of date, but….
1) Another company makes a bid for all of HZM’s shares. They offer to pay either cash or their own shares
2) Everyone gets to decide whether or not to accept that bid. Hopefully your broker, who in most cases is on the register as the holder, will allow you to instruct them how to vote your holding.
3) If the bidding company ends up with more than 50% of HZM they gain control and will likely declare the bid unconditional as to acceptances. If you voted to accept the bid, you get paid either the cash or the shares and your interest in HZM comes to an end. I might be making this bit up but I think that the bidder has to extend the bid if this happens so that holders who didn’t accept are given another chance to accept so that they don’t end up with a holding in a company over which they have no control.
4) The bid is likely to be conditional on a minimum level of acceptances, ie if the bidder doesn’t get control of the company the bid will lapse and so even if you accepted the bid you won’t get paid and will keep your HZM shares.
5) if the bidder ends up with over 90% of the shares they can compulsorily sweep up the remaining 10%
This is my simple practical understanding of the situation. Open to correction by anyone with better info!
CBax ,it;s good news you get to drink a lot !
For those who talking takeover . What happens to your shares if the company does get bought out . ? I bought my shares with share dealing company and not directly with a broker . I have never had a share I own bought out
Yes agree, that is my favoured outcome too because I think we get a good return without having to wait more years years years with however Horizonte would finance Vermelho. I think the sweet spot for selling is having a clear pathway to A2 construction because a major will buy that lock stock. Therefore I was very encouraged that A2 will be progressed during build of A1 (I imagine to a detailed feasibility level at least). So they can sell the mine with 1 working mine and 2 completed studies for Vermelho and A2. Hoping 30p+ but if we get less so be it.
Wasa I agree, I don't think an early offer is likely either, but you never know, someone may chance it. The miners are in general awash with cash, they either spend it buying stuff or give it to shareholders.
I think / hope a take out happens post A1 startup, post V DFS, pre V financing, with nickel heading toward $30k...
picked - interestingly I think with the expanded equity a cheap(ish) T/O becomes less likely. I actually don't think Orion and La Mancha would take 15p, perhaps 20p+ they would take. That probably makes a near term T/O unlikely, as someone would have to stump up close on £800m and not sure they would do that at this stage of the mine build.
For me, the structure of the equity meant T/O just got kicked down the road firmly into the 'mine is built' timeline. At that point someone may come in with £800m because we'd be worth that, plus something for Vermelho. I think the 20p is intact here as a result - I think Orion et al will want treble their money back....so us PIs can hang on for the same, albeit on elongated timescales vs what I was thinking.
Ivor - what would you take for your shares if an offer arrived tomorrow morning?
More to the point what would Canaccord, Teck, Glencore, Orion, CIBC and La? Mancha take?
I reckon that lot would fold if a 15p a share offer landed post issue of new equity, say in January. As the mine gets built and Vermelho gets a dfs that may stretch well into the 20s. In production you'd have to pay in the 30s or higher, Vermelho built and in production, anyone's guess.
If you were going to but this, how much would you pay? How much do you think horizonte would want?
More so, other than the construction risk it is completely derisked, and it’s a relatively low risk build.
Permitted, financed, etc. My view of course.
Morning All.
Are we more or less attractive as a takeover target now we have financing ?
Thanks in advance.