Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
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IsleworthSpy - ‘would suggest that OFCOM think that RM management are not pulling their weight. What other reason would there be for their stance on the USO?’
I would suggest that OFCOM think that the posties are a bunch of lard a*se (can you work out what this word is with one letter missing, I have faith in you) lazy, low IQ, wasters and they’re petrified of sending them back out on strike.
What other reason would there be for their stance on the USO?
Before this goes too D K for a great price for him.And moving forward when he makes lots of cash ?Surely ofcomm will get serious questions asked .Why they waited so long to make some sort of decision' on what was clearly needed at uk side to U S O.Is it to late now ? or not. They must be under pressure to act now or wait until D K laughs all the way' when they eventually make a call on U S O.
@ LittleDicky.
An interesting article. But, apparently, because NS & I have already given Daniel to increase his holding to above 25%, then there will be no obstacle from them for a complete takeover.
I have this on good authority from the investment guru who lives on this board.
@ Time2Kill.
The recent proposals by RM do not do away with the USO. The one price goes anywhere and 6 days a week service will still be in place. This does not require government approval. I have no idea why OFCOM cannot make a decision, one way or the other.
OFCOM are of the opinion that RM can make the USO, in it's current format, profitable. That is why it has not been changed yet.
I work in delivery and can see all things possible regarding the USO. I would suggest that OFCOM think that RM management are not pulling their weight. What other reason would there be for their stance on the USO?
If OFCOM can change the USO without needing Government approval then why is it now being suggested approval won't be given until after the next General Election?? Having said that it doesn't really matter if it needs approval or not as you can see whatever OFCOM recommend will be accepted by the Government.
Rolandrat - ‘The big boys fancy a change for more profit. Who knows what the regulator and government will do??’
More profit? What profit would that be? Royal Mail hasn’t made any for 2 years? The ‘big boys’ (whoever they are) fancy saving the disheveled, outdated mess of a company and making it at least viable and even possibly the best parcel company in the UK with the infrastructure it has in place.
‘The government reply is NO go away and run it properly.’
No. The government reply is ‘no, go into administration and get mopped up by unscrupulous foreign investors’
I’d say the government have done a grand job. Lol.
The USO can only last as long as the letter lasts. How long do you think that will be?
Oligarch. Spot on with USO, a wish you we'll. For the best description of the USO to make it simple if not understood. Two simple law's put in place for the privatisation sale to offer protection from exactly what they are trying to do now. The USO always made sure that the good parcel money subsidised the loss making letter part. The big boys fancy a change for more profit. Who knows what the regulator and government will do??. But for the last four years royal mail have been asking for a relaxation in the USO laws, the government reply is NO go away and run it properly. Not sure what has changed in the past five years to make the government change there minds. Maybe if Mr kretinsky gets hold of it he will draft in some professional people to see what goes on and get rid of some of the top management who are on mega bucks, but really haven't got a clue. Nice enough people, and I know a couple of them, but they wouldn't have a clue what to do with a letter and a door Infront of them with a letter box. As for Mr sidenberg finding 300 million, in savings that's amazing after all this time. I'd love to know why it took so long to discover it??. As oligarch will be aware of some of the massive money wasting activities that go on in royal mail. Royal mail call it New initiatives that fail, only to be cancelled at cost. As for being ostracized and slated oligarch, I'm used to it. Slated at work then nagging when I'm home, water of a ducks back. All the best to all, have a good weekend.
Money Shark
Has Seidenberg itemised where the 300 million pound savings are?
NOFEAR, very interesting article. If I understand correctly, there are mathematical formulae arbitrageurs use at particular stages of the takeover process in order to measure the likelihood of a deal going ahead or not. The implication is that the current 320 sp is set against the proposal price of 370p and the result at the moment estimates a 60% chance of the deal going ahead.
Also, because the govt. has not discussed changing the USO, the vulnerability and effect on RM's viability this creates are what is giving Kretensky the opportunity to get IDS at a bargain basement price. If that were sorted out IDS would be worth £4+, and would probably continue to trade on the LSE generating healthy dividends. Talk about shooting yourself in the foot.
Oligarch - You’re being extremely kind labelling yourself and the likes of Derek as ‘old Marxists’ because I’ve been far more vocal than that. More like pathetic, clueless, whining old b*tches but that’s being very kind also. Lol.
….And we’re going to listen to you when you’re asking such poignant questions as ‘does this deal have to be voted on by the shareholders’……lol.
‘It's also interesting to note that Seidenberg has apparently discovered that there could be around £300m in savings to be made within RM without the need for the UK Government having to change the USO. If that's the case then how come this was overlooked by the previous three CEOs?’
Because they were inept? Next question.
IsleworthSpy - ‘Or the subsequent offer of 3 quid 60p has n't elevated the share price to 3 quid 20p.
So, regardless of the fact the Daniel may not get his hands on IDS, the share price will not alter. Apparently.’
Wrong. No offer has been made. So we can just disregard your post and put it down to the fact that you were dropped on your head at birth.
No one here has said that the share price will not alter regardless. Show the evidence. There isn’t any.
The point is that IF Kretinsky gets the deal over the line then it’s KERCHING for me and my shares will be replaced with large profit.
IF the deal doesn’t go through then quite frankly, who cares? I keep my shares and Seidenberg leads the enterprise back into profit and I’ll cash my shares in a few years from now. No problem at all.
See how simple this game is? And how brain damaged you are?
Lol.
Roland, that's a fairly consise and comprehensive view of the business over the last fifty years. I joined in the late '70s and retired on my due retirement date last summer with a full pension.
You are right about the USO as well. The business was sold to the shareholders with the understanding that the USO be adhered to and you are also right that as the business has moved on then something needs to change however this is not in the gift of the shareholders (with the possible exception of one) but the board of directors, OFCON and the UK Government. There have been critics on this platform posting that the USO will change and how simplistic this would be however they have been saying this for a few years now despite others like myself (labelled an old Marxist) posting back that it's not that easy as Moya Greene was banging her drum for reform since before privatisation and still failed to succeed after several years. I suspect that some of these posters have purchased on the gamble that USO restrictions would change and the SP would rocket on the back of massive profits. It's also interesting to note that Seidenberg has apparently discovered that there could be around £300m in savings to be made within RM without the need for the UK Government having to change the USO. If that's the case then how come this was overlooked by the previous three CEOs?
As for Dave Fraud telling everyone that RM could go under with tens of thousands of job losses, that simply isn't true and the USO agreement (which some would insist can simply be ignored) fully outlines the procedure. It's worth noting that OMERS, who hold a 32% stake in Thames Water which was valued at £990m in 2022 have written down their entire holding to zero, so when Thames Water finally admit defeat will there be massive job cuts or will the vast majority of the staff still be required to keep the business running when special measures are applied? In my opinion, they would possibly require more staff in the right areas to correct the lack of investment in the sewerage side which is much more costly than the supply side.
No doubt you will now be labelled as an old Marxist (by the forum moderator) like myself and Derek and told that our opinions are incorrect or irrelevant and that only their views count but hey ho, hopefully this will all be DKs problem one day and we can sit back with our profits and watch the show......
Back in the sunshine days of royal mail when I started it was a monopoly,so it was a license to print money. We were also government owned and on top of all that it was like a holiday camp. Very different now, and I'm not complaining we had the good times, and since the monopoly has disappeared and privatisation it's become very cutthroat business. Nearly retired now and also a shareholder privately as well as my free shares from privertisaton. At the moment at my place of work they are on a massive internal cost cutting exercise for the results this month, nothing unusual in this as it's a yearly effort from royal mail to make the bottom line look as good as possible. The downside is no more recruitment only agency staff, unveted which can't be helpful. And also back to there old tricks of not delivering letters for weeks on end. Obviously they have not made the mistake of documenting and emailing this time around. That's where Simon Thompson and Keith Williams were made to look like a right pair of incompetents at the house of commons select hearing. Must admit it was better than watching a good film. Then obviously after that disaster and industrial action someone high up had to pay for it . So it was CEO Simon Thompson,s time to be double crossed , stabbed in the back and flung under the bus. In fairness to him he was very inexperienced, never been a CEO and recruited internally on the cheap. Ie puppet fall guy for the board who really control in the background. As for the prevailing situation, yes totally agree parcels are where the money is, royal mail could smash the competition if the handcuffs were taken off. But as we know royal mail was sold on the understanding of the uso obligation law. That's in the past now and obviously something has to change to make it work better and become more financially viable. That's for the politicians and regulatory authority to sort out. Can't see that happening before I retire next year as we're leading up to an election. As we all know politicians are little weasel,s and won't want anymore mud sticking to them before the election is done and dusted, as royal mail is a sensitive tin of worms waiting to explode. As for Mr kretinsky I'm guessing with his bank advisors and couple of Dodgy labour advisors lobbying for him, eventually with assurances from him it will get over the line. At £3.60 it's a bargain,asset wise alone it's like buying a house for two firds of the asking price. I'm thinking it may still be worth the £4 a share long term. As for the results next week I'm hearing that we are likely to be looking at a small loss to maybe braking even if we're lucky. Back to Mr kretinsky, if all this goes to plan I believe the dust will settle for 18 months to two years. Then all agreements will be off followed by a swift break up of there various companies, followed by asset selling and keeping all the money making companies abroad. That's what hedge funds do for a living. Buy cheap, asset strip walk
The Financial Times
Křetínský’s Royal Mail deal is far from in the bag. Were overdue reforms to take place, then the Czech tycoon’s offer looks low
Read the above FT article for free here:
https://archive.ph/2024.05.16-125508/https://www.ft.com/content/3e25982c-0475-4f94-b4ab-48f0b08e786f
@ LittleDickyBird.
It makes no difference apparently. According to great and the good here.
For example, the fact that Daniel offered 3 quid 20p for the company did not elevate the share price from 2 quid 20p to 2 quid 80p.
Or the subsequent offer of 3 quid 60p has n't elevated the share price to 3 quid 20p.
So, regardless of the fact the Daniel may not get his hands on IDS, the share price will not alter. Apparently.
@ Oli G.
Daniel also said a short while ago, that he would not be putting in a bid for IDS. And we know how that has panned out. Any assurances from Daniel, and i believe there have been some already regarding "job security", should fall on deaf ears. I don't believe him, nor should anyone within RM. The white collar workers must be shaking in their boots.
Or maybe, they'll give them all VR, and then re-employ them. A master stroke from our former leader, the Thompson Twit.
I remember the assurances Kraft gave Cadburys, that lasted all of 2 weeks. 😁
@ Cherryandwhite. Can you elaborate please on the below.
"""The unions have a lot to answer for."""
Sean989, I'm not sure what measures are in place to stop DK from asset stripping and splitting GLS off despite giving assurances that he wouldn't however one would hope that he wouldn't go down that route having parted with a considerable wedge?
JB, no problem.....
When the utilities were privatised, the great unwashed were told by the UK Government that privatisation would drive standards and quality up whilst the free market would drive costs down however when it comes to water you cannot choose your provider so you are fooked.
Didn't Cable say that about RM as well and now he is saying that the business has been mismanaged?.....lol
Oligarch my apologies I have misread it and misinterpreted it. Sorry.