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"They are CFDs (as stated in the RNS) and the 4 loanees of the shares have clearly agreed to let Polygon have the voting rights as part of the agreement."
I'm not sure that a CFD involves any loan of shares, but I think that you can make a deal with your CFD counterparty, who I assume own the stock, that they will vote their stock (that covers the CFD) the way you instruct them.
I have a vague idea that this has caused concern in the past because it allows Holders to gain voting rights and thereforr influence over the company by only paying the margin on the CFDs, rather than the full cash price of the shares
Thanks Matterhorn
Whatever is happening with the recent RNS' it is way above my head however it appears something exciting is happening behind the scenes. I believe in the SNG board and the product therefore I have no reason to sell.
They must be very confident that the price will hold and substantially increase later to pull it something like that.. that’s not a small amount to gamble with
Fruitsnveg - In simple terms yes I’d say it boils down to ‘on behalf of’.
Aurora holds Polygon’s shares. The other three I suspect are the CFD shares. I wouldn’t read much into the jurisdictions - could just be a function of their industry contacts/partners.
They have added the CFD's and entered into a contract with the other companies as they expect this to rise, no money has changed hands as yet they have just entered into a contract and will pay back a fee +plus what they paid for them in the first place when they took the option on and pocket the difference. I would suggest it is the other companies covering their positions without the risk. They have handed the risk to POLYGON who are sure this is a winner.
"sp is being held by them, so it won't budge"
How do they do that?
They are CFDs (as stated in the RNS) and the 4 loanees of the shares have clearly agreed to let Polygon have the voting rights as part of the agreement.
Franco-American. Hmmm.
Matterhorn,
Could they simply be 'acting on behalf of'? But if they were, why 4 separate entities listed, different jurisdictions?
Perhaps that's a rabbit hole I should just reverse out of before my head gets unstuck.....
You don’t own stock on a CFD. It’s leverage.....
“CfD holders do not have a vote at company meetings but they are interested in the performance of the company, one way or another, and are influential in driving share prices up or down.”
https://www.treasurers.org/node/3183
Financial instruments not only refers to CFD’s but also loaned stock, short or long. If you loan stock you get to vote but usually you return any dividend...
“When you lend your securities, they are transferred to the borrower. However, you will not miss out on any additional income. Dividend/coupon payments will still be paid to you by the borrower. The only thing that changes when you lend your securities is your right as a shareholder to vote. However, if you wish to vote, you can recall the securities at any time ahead of the record date.”
https://sharegain.com/faq/what-happens-to-dividend-payments-or-similar-benefits-when-my-securities-are-on-loan/
So the chances are that the percentage increase is due to a long or short position. The stock may have been loaned from the other named companies.
Usual caveats
Trek
Alkin, thanks I hadn't realised Polygon were a charitable organisation
CFDs don’t carry voting rights as it remains with the underlying shareholder.
This is my take on Polygon’s CFD exposure. Notice how up and until last week Aurora Nominee Ltd was the sole shareholder. Since last week Natixis, Jeffries & JPMorgan appeared on the TR1.
I suspect Polygon, for whatever reason, have an agreement with them to hold (i.e.own) the underlying shares subject to the CFD where Polygon will at a later stage use the proceeds from the CFDs to buy the shares from Natixis, Jeffries & JPMorgan. This enables Polygon to acquire a higher % with less capital.
Hanoihank, when I say force a sale for less than it is worth, once P3 results drop in the price will surge significantly. If Polygon have enough voting rights, they can use their voting rights to push a sale through at a price that gives everyone a good return on their shares but undervalues the company.
Once successful it would be great to see Synairgen remain a UK company but that is unlikely to happen.
I do agree with others though if CFD's weren't being used you would see the price closer to £3 now...
As if they would want ‘to force’ a sale through for less then true value, they aren’t far off 15% so will want to extract as much from any sale as the rest of us. Also, as frr as forcing it through although they’ll need another 36% of holders to want a low ball offer too. Silly notion.
Or it can be looked at in the opposite way that they can help to ensure a fair value on any sale. What is the benefit to them to force a sale at under value when they hold such a large % of shares?
Alkin - why would they aquire such a big holding in order to force a sale at less than its worth ?? Twice todays price, gosh, such ambition.
Yep 007 - having a chance to consider it I think that might be it. So for those the other day that were worried about Polygon's intentions this could clear it up - they aren't looking to play games regarding a TO. They are in big as they see the opportunity, and are covering the risk. They are along with the ride with the rest of us. If you are reading this - welcome on board Reade!
You normally don't get voting rights with CFD's as these belong to the share owners, however it looks like this is part of the agreement they have for these CFD's.
If they get a big enough position they can force the sale of Synairgen and this will probably be way under its true value, although this is likely to be twice the current SP.
Increased voting rights, I wonder why?
Likely a hedged short for their massive long position. Bullish either way
Not sure about the voting rights as the hedging thought just popped into my head!
Or are they just hedging their position?
Are you sure about that? (voting rights via CFD).
Question is why are they so desperate to get there voting rights threshold up by doing this?