Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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The circular is now on the SRL website under "home". P Morgan have given an irrevocable undertaking in respect of their 8.2% which leaves M&G as the only major investor with nearly 20% still to declare its hand; that hand may not be known until the day of the vote. If anyone has a connection with M&G it would be interesting to know their views. The problem is that BVI rules apply.
I'm surprised that there has been no reaction to the Circular that was issued. In my own words and translation, and I would be delighted to be proved wrong, but my reading of the circular is that under no circumstances can Pala et al revoke on what they have already committed to. On the other hand Iluka can 'walk away ' if they want. The whole transaction stinks. Gib1. You and I ( and your City experts) have a completely different view on what the definition of ' irrevocable' means. In layman's terms it means beyond the point of no return. If you do not want to accept that and still live in hope, then I totally respect your view. All other readers and posters must decide what side of the fence they wish to stand on. Reality (me) or fantasy (you). ' the baw's up on the slates'. Google will give you a reasonable translation if required. Unless you are totally convinced that your view is correct perhaps you should not give others false hope. Put another way - do you really think the Circular would go into such detail in every single clause of every single paragraph if there was any likelihood that the deal could be revoked. As I say - would be delighted to be proved wrong.
Those interested can attend. Circular to be released to shareholders today.
Was the sale price low as it factored in the huge CGT bill? Didn't Sisay advice shareholders to sit tight and do nothing at this moment just a couple of weeks ago? Why did he also expect the SP to rise to 45p by last September was it? Nothing makes sense.
Would the staff prefer a Chinese owner leaving the management in place? If so where are the Chinese?
http://awoko.org/2016/08/08/sierra-leone-news-sierra-leone-government-to-get-over-50-million-from-sierra-rutile-acquisition/ Who is going to pay the capital gains tax bill?
http://awoko.org/2016/08/08/sierra-leone-news-sierra-rutile-workers-scared-over-proposed-sale/ Looks like the deal is not going through as smoothly as Iluka thought!
short of stock? A few decent buys of 50k. Something afoot?
Agreed. If the bid undervalues the company I would expect some other entity to make an higher offer.
All, for the avoidance of doubt, Pala have given together with Neon an irrevocable undertaken to vote at a meeting as called to approve the sale of business to Iluka in favour of the sale. If the meeting is not called ergo there is another offer and they vote in favour of that then so the undertakings given fall by the wayside.
There is still a general meeting to come. I completely agree with you. They seem to have sold not just the bottom of the cycle but have not waited for Gangama to really get going to give exponential production growth a chance. Does Pala have problems of its own? Does Pala need the cash? Has Pala just got bored? Does Pala have a better fish to fry? But I still say that if this is undervalued where is an alternative offer? And if, as some of us think, Pala has been looking for a buyer why no one else came forward.
Dara, you make a very interesting, even if hypothetical point that another bid might be received. That said I still firmly believe that irrevocable means just that. If you google the definition of the word it is along the lines of irreversible. Of course we would all want another bid to come in but even if it did my own view is that it wouldn't matter. Pala etc have already closed the deal and in my view it cannot now be stopped. We will never know if we all thought that the Company was worth more than it actually is/was. You are quite correct in saying that. Again you are correct that Iluka is the only offer on the table but what we all know is that this is completely (on the face of it) the wrong time to accept such an offer. No pressure from the level of debt, all expansions going to plan, production increasing, costs reducing and prices increasing. If you looked at the mineral sands Industry over the past 5 or 6 years you would say that this is the first time that there is some light at the end of the tunnel. Why would one not let things run for a further 12 months to enable the Company to run into significant profit. True enough the dodgy dealings in AIM stock.
Never proved but I trust your instinct. If so, however, they could make an offer if they thought 36 pence undervalues the company.
it was chinese previously :-)
Way back machine can pull some old screen shots back from previous era's of some websites. https://web.archive.org/web/20110807182644/http://www.sierra-rutile.com/ AIM....say no more. You can look at BMR, ECR, RRR, RRL, BHR....all had the promise of jam tomorrow, good times are just around the corner etc. If you stay in an AIM company long term you will not profit.
I am not intending to do anything unless either J P Morgan or M & G want support at the meeting. I am just pointing out thoughts and I am too busy frankly with day to day work to start going back through posts on bbs etc. I agree with what Gib was told that this is a done deal unless ANOther wants to outbid Iluka in which case there would be more to say and something to support but no one so far has come forward. My guess is that the filed of Rutile producer miners is small and the whole of the market worldwide will know of this deal. On the basis that they know, it is a matter for them to approach JPM and M& G for support in s counter offer. I only have 250,000 shares so I am not in Gib's league but if something were to occur and a counter bidder wants to offer I will naturally lend my support. As for the offeror in 2013 for all we know it was Iluka - we just do not know although the "culprit" was suspected to be Chinese. If so that party will know about the Iluka offer and if it wants come forward and bid higher.
also jp morgue.mng etc they didnt budge o previous offer when pala came to buy into txr when sisay so called independant board recommended agaisnt pala coming in-remember when they were caught shy at 45-49% and crawled over to 54% with raised offers 25-30p etc-how the hell could sisay be part of an independent board at that time? also jpmorgue werent interested, so even a few years along whys jp and the other senior stakeholders ok with it now and the price aint much better? esp when srx are about to move towards producing up to 250kt per annum and smash all known records and the markets ready for it? srx have never been positioned so well and now they sell? take note of all the chinese players too dara, having to clear up their acts re chlorine process and other polutant regs-srx has cleanest rutile deposit bar none. did u know who the previous bidder was dara? last year? the one that didnt complete? the deal? and where does sisay fit in all this? where is he going? mr most influencial man of 2014? was it? likes his air time on sky with jeff randle-wonder if sky will run a piece in this deal as they ran a few now on srx which is unusual considering how many miners are out there. val iorich-skint is he?
Hi-have been busy resting-will try and respond later. im guessing you looked into the changes made by txr/srx a few years back? is there any way of bringing up the archive posts here from 2010/2011 circa? also you would need site of the original aim submission docs and the old srx and old txr website (Screen captures) which showed the differences. the very subject your discussing was raised back then as it bought fear that this day could and would come. I fear its a done deal at this time dara and trust me bringing any court action, even with direct access via silks in london you would be looking at 20-100k before a hearing unless you had the evidence and done your research first-ie presented your arguments, quoted certain acts, and done most of the silks work for them. aim is shittty-period-the regulators, the fca etc all weak, feckless, worthless piles of shitt. even sfo is useless-they wont open any case unless its valued over xx mill. have u had any correspondence yet re the deal? corbs;'-) has any one checked into palas status and vlads situation-recent dealings~? maybe theyre repositioning themselves or have their own problems to deal with internally/portfolios etc? the timing is wrong re this going to iluka imo even tho someone here has mentioned further costs re mining here. id rather see luka take over that other pile of debted shyte kenmare and leave srx to expand. dara-have u had a frank talk with sisay at all? or any of the nomads/brokers as to whats really behind this/? dara if u want to fight it you need reasons/evidence and good direct access to a silk that knows this field to save money or your spending serious sums down the drain-imo
You have not upset me. Should a white knight come forward with a higher offer I would have thought all shareholders would support that. If it then came to a vote at the meeting whilst the vote might be carried in favour of Pala/Neon which I doubt since each would want the best price for their own shareholders then I could see a possible fight in court. The reason would be simple ; the company is shown to be worth more and minority shareholders need protection; we do not live in the British Virgin Islands. But you must keep an eye on the law i this respect. Whilst the board might argue that since the company is governed by the articles applicable by being registered as a BVI company, those rules apply. Your staring point is to google the words protection of the interests of minority shareholders. The argument may be academic. Irrespective of the fact that no one might com forward and offer more, we may all have thought this company worth more than it is in reality. Whilst house prices may be rising a house is still only worth what a buyer is willing to pay. We may all have deluded ourselves including Pala who may not be as good as they think they are and they may possibly have offered more than they should have in 2011 when they offered 30 pence a share and Jan Castro, the erstwhile chairman of Pala, may have been in error in paying 50 pence a share more recently. The fact is that the only offer on the table is that of Iluka. A lesson to be learned is do not invest in a company registered elsewhere than in the UK or get the authorities to ban companies registered elsewhere from being listed!!! Just my opinions
When they refer to irrevocable they mean that Pala have voted for the 36p bid and cannot change their vote - what Gib is saying is that they could also vote for another higher bid (although unlikely)
Daramuda Your response to my teasing/daft post was first class and I take my hat off to you. When one gets bad news one can react with anger or humour/sarcasm . I try to go with humour because otherwise I would walk about being an angry man. My apologies if it came over too strong. I try to go through life with 'C'est la vie' as my motto. Like many many posters here I have bought at 10p. 30p, 60p etc etc over the past 5 Years and (being totally honest) my average is just above the offer price. So ye I'm going to take a loss which is maybe why I am so irked. I anticipated my return, when sold, being six figures but that's not going to happen. A Stitch up from an AIM listed Company? of course it is. Sadly I don't have the funds to finance either of your suggestions on my own but would be more than happy to contribute to such an action. With a good Firm of Corporate Solicitors would we win? Of course we would As I said in my last post we all (including JP Morgan and M&G) can do nothing about it unless we take legal action. If either of them thought that was an option I guess they would do that.....which they haven't. BTW Obviously Not sure who Gib's contacts in the City are but as I said the other night - the definition of irrevocable is irrevocable so for him to suggest that there is a small glimmer of hope is utter nonsense. My apologies if I offended you the other night. Anger or humour.....we all can choose.
That is why I mentioned at one point the words "white knight". It would be good to know JP Morgan and M&G's positions. They control not far short of 40% between them. If you have not seen it it might (only might) be worthwhile seeing Morgan Stanley's comment on the Iluka ASX site yesterday or the day before talking about the bottom of the cycle. If this deal goes through Iluka will control quite a chunk of the world's quality rutile. I am just a tad surprised that the Chinese or Japanese have not shown an interest. Take care.
That is why I mentioned at one point the words "white knight". It would be good to know JP Morgan and M&G's positions. They control not far short of 40% between them. If you have not seen it it might (only might) be worthwhile seeing Morgan Stanley's comment on the Iluka ASX site yesterday or the day before talking about the bottom of the cycle. If this deal goes through Iluka will control quite a chunk of the world's quality rutile. I am just a tad surprised that the Chinese or Japanese have not shown an interest. Take care.
Apologies, I didn't intend that, only that I bought shares in the knowledge that Pala's interests might not always be the same as other shareholders. I never expected them to sell the company at such a low price though. Sierra Rutile has been Pala's biggest success for some years and I suspect they were under pressure to do a deal, having held for so long. Clearly there have been a lot of internal changes too - Jan Castro leaving suddenly, Mike Barton as well.
Its a shame that we have to see all of these silly posts from know it all's after the event but hey thats life. I have been speaking to some of my city contacts today, they point to a small glimmer of hope; both Pala and Neon have given irrevocable undertakings to vote in favour of the takeover only at the meeting convened to approve the said takeover. This does not preclude them from agreeing to an alternative bid should one be made. Should of course is a big if but a point worth considering. We can only hope!!!