focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Quick question, if either party makes a bid by the 22/29th, will shareholders have the option to accept and sell or do we have to wait until the shares are "un-suspended" to sell (potentially end of Q3)?
In such process you negotiate with other major shareholders and come up with a price the parties are ok with. So we have 2 interested Major Shareholders want to acquire the company. Lets see the outcome
There are 2 bidders
Read both RNS!
After lowball offer from bidder 1, bidder 2 bought in (19%) and now the game is on!!!
Bidder 1 can all time make a new offer. As one of both major shareholders want to buy, they will negotiate.
Who is going to show their hand first?
It only helps us with there being 2 bidders as they can be played off against each other.
Latest 29th of July - was communicated as part of RNS.
Assume negotiation is nicely ongoing
GLA
Yeah but when...?
Now would definitely be the time to buy - Discounted share price and discounted £
Today’s Improved Dollar strength is really helpful.
Last year 28 September (share placing) - £1=1.35$
Yesterday - £1=1.21$
Today - £1=1.19$
Becomes a nice headwind for both buyers as they hold cash in dollars. Hope dollar further improve in strength !!! So we see a nice SP offer in £.
You’ve already been told in the RNS when the accounts are likely to be issued, what more do you expect them to say?.
When a formal offer has been placed or cancelled we will be updated, simple.
I think that with the share being suspended they should give us some form of update this week. To at least keep us shareholders in the loop as best they can. Even though we do know what is going on it would be nice for them to just put something in writing advising us were each part is up to with bidders and end of year!
The Moral to the story is it happens to us all at times! And is nothing to worry about especially if you have good orders coming in. I am sure the potential Bidders can see this and we should be fine :) GLA
Alot of profitable businesses have similar problems at times! I own a business myself and during covid online sales boomed! We were up around 70% and making more money than ever on paper but we started to struggle as we grew too fast and it affected our cash flow as we had to purchase more stock and still had payment terms of 14 days for our customers. We had to take out a loan just to cover the growth and help with cash flow. The Loan was paid off in about 4 months and we are still up around 40/50% and cash flow is working perfectly well!
Great read - as assumed its a cash issue only as they growing and payment terms hold assets for a longer time on books.
When working capital is increased it will make loads of profit in the future - good asset to have indeed
Very interesting read thank you for sharing :)
https://www.seatrade-maritime.com/shipyards/lamprell-mulling-fire-sale-face-liquidity-crisis
The above article is a helpful read and gives reassurance of survival. Highly recommend
See it the other way around, he bought 19% at max of 8.5 Penny / the other interested party has 25% and they paid 34 penny last year. So now the question is who will win ? Bidder 1 and require 25% with a loss for the other major shareholder or the 25% party increase its bid and the guy make a bid win?
Here again the money is needed due to the fact that working capital need to grow as business is growing. With scaling into growth the margin position will improve. I am as well sure that the maintenance of their equipment produce as well nice additional margin. A young company on growth path!
Here another example, Blueprism made zero profit for years and asked every year via placing for more money. It was sold with 35% premium in the end. However shares had not such aggressive downside as here just days before offer.
https://techcrunch.com/2021/09/28/rpa-industry-consolidation-continues-with-sale-of-blue-prism-to-vista-for-1-095b/
Typo - institutions
The possibility of a rights issue still shouldn't be ignored. IMO any instruments that sold shares last week did so because they were not prepared to put more cash in. I'd give it a 50 50 chance.
Thats the reason i imagine 100% premium is acceptable.
Still under the value of SP before crash and only 50% of the SP from last years September Share placing.
A normal practice is highest bid price and a premium on top.
Such premium is often around 35% but there where SP was extremely undervalued and massive future potential i have seen premiums over 100/200%
Nothing untypical
Agreed! I’ve had shares in several companies in the past. All had increased prices after takeover and suspending shares.
@scrwal Sami Al Angari increased holdings last week and that offer has to be at least 8.5p
The funding is easy to explain! Due to long production process their working capital need to be increased - thats nothing bad when you grow, a normal thing. Tesla was no different. The process can now take up to the 29th of July. This is now my 4th company where i had invested and was taken over. My assumption of sales price are 17p.