Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
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This deal is a kick in the teeth for long term shareholders.
The only reason it may go ahead is that the directors will receive life changing piles of cash despite presiding over a disaster for the shareholders who they are supposed to be working for: the unacceptable face of capitalism
All we can do is vote against and hope the institutional holders dont accept the deal
mango you are such a cynic. The BOD are primarily charged with looking after shareholders interests, not in feathering their own nests......shame on you for suggesting it!!!!
????
That's was meant t to be a laughing emoji :-)
Ha ha, that's a relief, thought I'd offended you!
Some of the posts on advfn are worth reading. Talk of an earlier 180p bid rejected by the then board, when the NAV was lower than today.
Obviously for a substantial company the SP has to be viewed relative to the level of the market which it is in, in this case the FTSE250, as well as the sector of operation. The FTSE250 is down 10% over a year. Even after the bid MCS is down double that figure..
Not sure what point I'm trying to make here, but to me this bid is opportunistic and the BOD is weak and barely invested themselves in the equity. Certain fact is that the fate of MCS is in the hands of Institutions, not private investors. Our clout is negligible.
This is a gut-wrenching offer for LTH - I count myself in that crowd having invested 2yrs ago.
This stock is easily capable of generating eps of 10p+ so the offer is little over p/e of 10 ... and I would much rather have a 7-8% annuity income than this one-time cash.
I'm certainly not selling in the open market and will vote against the sale ... quite optimistic that another opportunistic Private Equity or Hedge Fund will counter-offer in the 125-150p range ... which is still below long term value
Thankfully I averaged down when the sp dropped below 70p so will walk away with a small profit if this goes ahead, but I purchased for the yield not the one-off gain
Undoubtedly the BoD have all been advised that they will be retained on improved contracts to continue to manage the business ... so much for representing the shareholders
It's a 140-150p share and in time it will easily recover. I don't want to sell.
Sadly Marble, the way things are at present you wont have the option. Your shares will be sold from beneath you.
I'm assuming that the Lone Ranger (or whatever they call themselves) will increase their holding by buying in the market - why not, they buy at the current price and gain shares on which they can cast votes that count towards rubber stamping their takeover or wait until the end of the bid process when they will probably pay pretty much the same price for shares on which they were unable to cast votes. So they may as well go for it. Anyone know the rules about them buying (and to what limit) after the offer is announced? I'm assuming they can increase to 30%, the limit where making a bid would be forced upon them.
I think they will be tight on this offer - I noticed the para about retaining the right to reduce the offer price if any divi was paid out. That may be standard but strikes me as a company that is unlikely to put another 40p per share on the table. A white night is needed, preferably someone who will sack this totally spineless board.
Moles?
In Yesterday's Prufrock column in the Sunday Times we read that Paul Lester the chairman of MCS who has made the deal to SELL MCS at a knockdown price, "was also chairman of brick maker Forterra until last year, a position he took up in 2015 when the company was owned by .....Lone Star.Fancy that!"
I find this to be incredible....and can't
get the image of a beady eyed mole out of my head.
Meanwhile in Saturdays Times , Alistair Osborne writes " McCarthy bid seems puzzlingly low "
Answers on a postcard please.....