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Actually, ignore my posts on this. Sorry. Patel has always had a fairly significant minor stake. However, there is something very strange going on in the background. I cannot understand how Sustainable Capital, Lombard and Zurrin have signed up to this deal. It has the feeling that there exists some loosely barely articulated downside that could hit the company if they did not. Extremely difficult to know what is going on.
I’ve only 50k shares but I will be voting against! Low ball bid by management smells fishy
Sorry, significant correction - 363k shares is clearly not 30% of the company but other questions still stand.
This is a key paragraph in the announcement:
“The Shanta Shares owned or controlled by Export Holdings, a company associated with the UBOs, including Ketan Patel (being 44,488,248 Shanta Shares as at the close of business on the Latest Practicable Date) will not constitute Scheme Shares. The Shanta Shares owned or controlled by any Bidco Connected Individual (being, in aggregate, 363,448 Shanta Shares as at the close of business on the Latest Practicable Date) will constitute Scheme Shares. No member of the Bidco Group or any Bidco Connected Individual will be permitted to vote the Shanta Shares owned or controlled by them at the Court Meeting but will be permitted to vote such Shanta Shares at the General Meeting.”
I am not entirely sure as to import. However, firstly note that Patel & co have managed to get almost 5% of the company without notification (I need to look at this more but I suspect they have hovered under overseas notification requirements). Secondly, Bidco Connected Individuals seem to own 363k shares (over 30% of the company). I don’t understand (a) who they are; and (b) on what basis they have avoided stake building disclosure requirements. Does BidCo Connected Individuals include Sustainable Capital & Lombard? Seems unlikely. Does anyone know? Thirdly note that there are two votes with different structures - the Court vote and the general meeting vote.
Offer price is based according to them on the following (Don't shoot the messenger)
Based on Market valuation :
The Consideration of 13.5 pence per Shanta Share values the entire issued share capital of Shanta at approximately £141.95 million and represents a premium of approximately:
→ 6.72 per cent. to the Closing Price of 12.65 pence per Shanta Share on 19 December 2023 (the "Latest Practicable Date");
→ 23.28 per cent. to the volume-weighted average Closing Price of 10.95 pence per Shanta Share for the three month period ended on the Latest Practicable Date;
→ 32.63 per cent. to the volume-weighted average Closing Price of 10.18 pence per Shanta Share for the six month period ended on the Latest Practicable Date; and
→ 27.74 per cent. to the volume-weighted average Closing Price of 10.57 pence per Shanta Share for the twelve month period ended on the Latest Practicable Date.
The offer price should be higher and I suggest that they pretty much agree with this themselves, there offer has been made against what value the UK AIM market has been attributing to SHG over the past, recent period :
De-rating of gold sector valuations..............
Over the last decade, the valuation of publicly listed gold companies has de-rated with industry research illustrating that UK listed African gold miners are now trading over 40% down on a P/NAV basis than five years ago. Bidco believes the impact on junior gold miners within that peer group is exacerbated by other factors such as lack of diversification, jurisdictional issues and poor liquidity.
Poor liquidity is the biggest one I suggest plus shame that this comes just as we have increased production into rising POG
I,m waiting a few weeks to see if anything develops
SHG directors connected with the company doing the takeover??
Apart from companies in distress, how many do you know were offered a paltry 6% premium in a takeover bid? Worse still, how may boards have jumped at a price which may well have been reached today anyway on rising gold and falling inflation?
Really terrible decision and questionable behaviour. All that can be done by PI's is vote it down which given the proportion not with institutions can probably be achieved. I've waited long enough and not prepared to see such blatant carpet bagging succeed.
Bitcoin and gold are incomparable, though many obviously try to link the two, very wrongly labelling Bitcoin 'digital gold'. Gold's physicality and historical record couldn't contrast more sharply with Bitcoin's nature as a digital invention and Bitcoin's lack of record as as a store of value over the long term. Besides, anyone at any moment could create yet another cryptocurrency superior to Bitcoin, and so on ad infinitum, and we all know what'll happen to Bitcoin when quantum computing develops sufficiently to crack blockchain. "Gold is money, everything else is credit" has never been truer, barbarous relic or not.
Relevant record date with regards to the divi.
It all feels like a kick in the Cadburys.
Kkkrrr is wrong, imo, Gold will not be correcting next year. B of A just forecast $2200 to $2400 for 2024. Putin and BRICS will be a driving force along with the Shanghai/LME connection. Selling because gold 'might go down' is daft. On that logic no-one would hold anything.
I guess Bitcoin would be a good example, though many have made money from it; we don't hear from those that lost money.
Kkkrrr, no-one can be sure of anything about markets, especially over the short term. But we know for a fact from all the evidence from the past century and more, that gold does very well when currencies aren't backed by any store of value and are abused through real or virtual 'money-printing', when there's geopolitical instability, when there's unsustainable, ballooning national debt, and when real interest rates are falling. The next couple of years are looking very VERY good for gold.
I'am not sure the market will risr early next year .. look at the COT data for gold .. it looks more like there will be an correction of 200-300$
Exactly, in the short-medium term the downside in holding (or indeed in buying more as I have done today) is in fact a 5% gain while the upside remains effectively unlimited. Selling now is senseless, and if anything just rewards the BoD and their stitch-up.
There's nothing to be lost by waiting 3 weeks and seeing if a knockout offer comes along.
If honesty and transparency is what you’re looking for on the markets you’ll be sorely disappointed again and again my friend. As what happened with the three takeover offers in October / November 2022 there wasn’t any retail support. Of course this time around the Board have managed to gather some limited support for this offer however anybody watching over the past year can see the offer price should be far higher.
Shanta will be required to hand over the same information to any counter bidder as they have given to ETC. Blue Book rules.
"...........our objective is also to provide liquidity to shareholders to realise their investment for cash.............. "
Gold is money...all else is credit........if I wanted cash (Treasury IOUs)........always losing money.....99% down against gold in my lifetime.......I may as well buy a Rolls Royce Motor Car or similar...........indeed when I look at Classic car prices....I'd have made a fortune and not lost instead by being here for 18 years or so!
Perhaps it's time to buy krugerrands!
If as you rightly point out it's pain to see it's worth much, much more, then there will be counter bidders offering more realistic prices.
I have sold....Because I do not like a trapped s.p. whilst the market is rising,and I do not like a board who have shown contempt to the shareholders,and who I do not trust. I cannot see this s.p. rising when 13.5p is being offered.and if it gets turned down,the board are still in charge....I see the unfairness .....I wish the loyal Investors the best,as they deserve to do a lot better than get 13.5p for something that it is plain to see is worth much...much ,more
They also managed to chuck the bid in when the markets & businesses are winding down for a break, only three full trading days in the next fortnight.
You have sold and now want everybody else to do the same so you 'know' you made the right decision.
Tough, not happening.
We all know the company is worth in excess of 20p minimum....But if the offer gets turned down....We have a board in charge ,who in my opinion,are not honest....not honest at all.....What would they do next?....
I agree, what on earth are people rabbiting on about saying that their cash will be 'tied up'? Or that the price is likely to drop if the 'agreement' falls through? You have to wonder who they are or what their motives are. In actual fact, the SHG share price is likely to jump if the current stitch-up agreement fails because with the price of gold and whole gold sector steadily rising on the back of very strong secular trends, and Shanta already highly undervalued - as Patel and Co. must know. There's now a fair chance that Barrick or another major will come along with some spare change and snap up Shanta at this price. IMO.