The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register 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.
I see what you are saying, but two undervalued companies don't always make a good investment there are reasons for that. Look we all know and should do by know, that the reasons Sdx is done badly due to management and there direction with lack of ambition. Maybe why tenaz share price is undervalued due to the same reasons. I was always hoping the existing management that was temporary at first in Sdx would eventually find someone decent with experience to run this outfit but I guess that big wage packet was to much to let go. The trouble is there are a lot of small companies like this which come and go and really people should stay well clear.
At the point of voting we can appraise the value of the deal.But it is not just the respective pricing.WE think SDX is undervalued at 9p.Maybe TNZ are undervalued at 2.26,they have been much higher over the past year.Maybe the 2 are a good fit
Yes it has and you have stated the great ratio difference when merger is done as tenaz shot up after it was announced. That difference is disappearing , as we get nearer making the deal each week less sweeter and harder for us to swallow.
Wrong.Tenaz share price has risen since the deal .
I was both relieved and disappointed when the deal was announced. I felt management's strategy was putting the company/stock in a death spiral of burning reserves and not increasing the cash balance. I hoped the deal would let me get out at something of premium to my very low purchase price and move on.
Since then, we've seen SDX's good drilling results, strong financial announcements and a fall in Tenaz's share price. For those reasons, I think I will vote no. It probably won't make any difference and I fear what the management would do if the deal was rejected but it's just not sufficiently attractive.
I think staying an independent company or waiting for a better offer is preferable.
Don't count your chickens just yet littlened. It is falling albeit slowly. Look just like legache I think this deal is rotten benefiting two people only and that is it, but just maybe this is going to be the only way this company moves forward and one day we get our return under the new management. surely this new management can not be as bad.
My view, is that once the transaction completes value is eroded, yes, you *might* get a short term hit. You might not. The deal is theft from shareholders and should be voted down.
Mea culpa.The point I was making was that ANY uplift would take effect on merger.You wouldnt have to wait for SDX to recover which is the case now
Legache,I have never said what the prices will be at the date of merger.I have said what the uplift is at the present time which is all anyone can do.Just the facts
---------------
Liam ,you are being shortsighted.The 30 % uplift is immediate on merger.
---------------------
?
Tenaz up 4.2% today,will that please Barhut ?
Legache,I have never said what the prices will be at the date of merger.I have said what the uplift is at the present time which is all anyone can do.Just the facts
Great, well stop saying there's going to be a "30% uplift on merger". As you say, this is subject to chnage.
I think it's important that those of us who have read the proposal help other PIS understand it correctly. Particularly as the vote is still open.
This is a bad deal based on any accounting metric you want to name.
There is a 30% at present,of course things can change but that is the nature of investment.In theory both prices should move up or down in proportion to the deal,36% and 64% as though the deal was effective.
Ned, how many times have i said, you do not know there will be 30% "uplift" - it will be whatever it is when the deal completes.
Liam ,you are being shortsighted.The 30 % uplift is immediate on merger.As a holder of TNZ you will then benefit not only from SDX future prospects but also TNZ.The reason for the merger is that SDX will benefit more by being part of a larger entity than on its own.If you think otherwise then vote against the merger
I am sure we are not alone in this situation. I will have a look at Interactive Investors, but as i have a number of other holdings with my current broker it would mean longer term that i would be paying 2 sets of fees which again isnt very appealing, but is looking like the only option i have really if this deal goes through. Fingers crossed for us all that another deal comes to the table, but i've pretty much given up hope of any positive news coming out of SDX. The current deal being proposed may have some benefit in the long run, but the 30% uplift from current share price mentioned by Littlened is of little comfort when my overall average holding is currently well over 50% down. I know there's always a risk with investing, but it feels like AIM is the wild west, with companies seemingly able to do/ say what they want with little regard for shareholders whilst the directors line their pockets. Unless there is an unlikely and significant improvement to the management/ share price/ shareholder value then I'll be out of this as soon as i am in a position to minimise and stomach my inevitable losses.
No ,TNZ went up yesterday down today with the market,no big deal.Dont try and guess short term share prospects ,its a fools game
Tenaz continues to fall back to the merger price. What you don't want is the share to go into free fall and goes lower as this percent will make the deal even worse than it is now. The MM could lower it to stop the selling once deal is done
I am in the same boat as you Liam. Currently I am holding hoping for another bid though I’m not so sure another bid will happen. I will decide what to do later, before a completion happens. I am looking at transferring to Interactive investor. I have opened an account with them. There is no monthly charge for 6 months. I don’t want to have 2 sipps open due to double the costs. So if I transfer over it will be the whole account. This will take a few months to transfer but can be done quicker if I sold all holdings and went to cash which I don’t want to do. Big decision which I don’t want to rush.
well at current prices this is a 30% uplift,which is not too bad ,if not what we were all hoping for and the new company will be a better place for the business to grow.
Ok, thanks! Interesting to hear your take on it. Being a fair bit underwater on this i don't have a lot of option really but to sit on my hands and hope a better offer comes to the table, as i think the TNZ offer is far from appealing at the moment.
No once IG have the shares ,unless they decide to change policy and trade in them,they would ask you to transfer those shares to another platform.A bit time-consuming but not a real problem.As to another bidder MR's AGM presentation never mentioned the merger at all,which was strange.I asked MD whether other parties were fishing and he said he couldnt comment,which of course is right.But he could have said no ! I just felt he knew something but was unable to say so.Then there are the regular sells.Looking at the assets of SDX(50% cash) and a deal on the table no investor would be selling now unless they had an ulterior motive or strapped for cash in which case they would sell the lot in one go
Littlened.... you may have a point regarding IG, but i imagine that would mean that they are simply holding a certificate for my holding, but i would not be able to trade the shares with them, so doesnt really resolve the issue. In terms of quoting on LSE, i have little confidence at this point that anything SDX do or say has any weight to it.... and that could mean being effectively locked in to shares i can do nothing with for 'x' amount of months/ years. Just a shambles really. I assume at the moment that the merger is going ahead if all motions were voted in favour at the AGM, although i did not see anything specific to the potential merger in the voting? In regard to your comments regarding another bid, on what basis are you confident there is an alternative bidder coming to the table?
Liam,It is the intention of TNZ to quote on LSE in due course as this is where they can raise capital best.But it would not be immediately.What can IG do if you hold and they receive the TNZ shares ? They cant refuse to accept them and cant sell without your consent surely(lawsuit to follow).I am sure IG can solve this problem if you insist
Hi all, as a long term holder of SDX, i am currently considerably underwater on this one (as i suspect many LTH's are also). I am very disappointed with the company and had been holding out for the promised 'return of shareholder value' which appeared to have been outlined by means of a share buy back or dividend this year in order to claw back some of my investment. This 'merger' has seemingly come a bit out of the blue and im still trying to make sense of it and the jury seems to be out on whether it is a positive move or not. One thing that is not positive is the likely move of shares to TSX.... my current broker (IG) does not offer share trading on the TSX and has therefore indicated i will either need to close my position (at a significant loss) , or transfer the stock to another broker (which no doubt will also mean i incur additional charges and probable brokerage fees). Does anyone have any experience of going through a similar process or recommendations for alternative brokers if/when the time comes? The whole thing feels like a complete mess to be honest if this goes through, and SDX has proven to be a consistent series of broken promises and let downs. TIA