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I cannot understand why Pala have let go of it at this price.
Ladies/Gents AS our Australian 'friends' have already entered trading on Monday morning Iluka have already issued a notification noting the agreed details of the transaction. No more speculation/debating/ discussing what may or may not happen. It's already happened - end of. I've noted below a few of the responsibilities that Directors have in relation to their role as Directors. If any of us fancy clubbing together to take Legal action against them (especially point number one} then we should seriously consider it. If not then it's 'and it's goodnight from me and it's goodnight from him'. It's been a pleasure being part of reading this (ex) Board over many many years Adios mis amigos To promote the long-term success of the company (rather than the interests of, say, the majority shareholder). To act within the company's constitution and powers, ie only do things the company is authorised to do, and that they, the directors, have power to do (rather than the shareholders). To exercise independent judgement (ie not take instructions from a third party or, for that matter, a dominant director, on how to run the company). To exercise reasonable skill, care and diligence. To avoid 'situational' conflicts of interest, ie any situation in which the director's interests do or may conflict, directly or indirectly, with the company's. This includes where a director exploits any of the company's property, information or opportunities. Not to accept benefits from third parties that are offered because they ar e a director (or because they did, or omitted to do something as a director). To declare any direct or indirect personal interest in any proposed transaction or arrangement to be entered into by the company (a 'transactional' conflict) to other members of the board, either at a board meeting or in writing.
Evening all. Not sure what to make of the offer to be honest other than the price is far too low. Well I bloody hope that's what all of SRX board and PALA think. Was also disappointing to see the price activity come to an abrupt halt on Friday as a result as it had created some good monentum. The share value as we all know should be at this or higher anyway. A bid at 37p is just silly ! On a positive, a fair amount of decent sized trades last few weeks in mid and late 30s So hopefully it's not just small PIs getting a piece of the action or positioning themselves, Directors bought heavily in 2013 and 2014 in 50s and 60s PALA bought a load at 30p last time round Can't see them being happy to off load at 37.p I would want to see this Being at least double their offer. £1 would be very nice and not unrealistic given the prospects. Intriguing that SRX mentions the price this time but didn't the previous time in 2014 I think it was. Let's good PALA haven't had enough and just want to get their money out.... Good to have finally something discuss other than just speculation! An interesting few weeks ahead. Imo dyor etc 9
Congratulations Sir - what an interesting post. Thank you for the relief. I was not selling anyway but your post has caused me to pull up the draw-bridge in case I had a change of mind.
Iluka is an Australian company and may see Africans in the same light as they see aboriginals. Their website boasts their resources were in stable jurisdictions, implying that others were not in stable jurisdictions. In the old days, the colonisers swapped glass beads for gold and diamonds. Those days are gone. Historically Australia was colonised by people sent to serve out their sentence rather than cluttering up British jails . This criminal mentality may persist.The belief is that the criminal mind can only concentrate on round figures so 500, 600 or 700M AUD. Iluka appears desperate to gain access to rutile supplies. They need to convert a large amount of ilmenite to synthetic rutile in their operation. Glass beads should not be accepted. Corbs , Gib and others, keep the faith. 2 AUD per share sounds fair.
Iluka did not put out the price of 36 pence in their first RNS calling for a halt in trading. In my view they expressed surprise that SRX had stated the price of 36 pence in their RNS (SRX) of Friday morning. I think the board of SRX deliberately flagged the price of 36 pence and that is why I made my comment earlier about the talks initially announced on 19th November 2013 at a time when the share price was higher than we are now. The company is for sale but only at the right price. Come and get it boys but pay up if you want it.
The point again is SRX RNS refers to when an offer is made. I think Iluka simply put out 36p to encourage some PI's to commit suicide. I am with you that Pala will be looking for a sensible return. My view is 85p-£1 anything less is a joke in my opinion. Lets see what next week brings. £1 a share is a £500M deal which is not far off what they wanted to pay for KMR.
When the announcement was made on 19.11.13 that there had been an approach the statement said that it had been made by parties (plural). The share price had been 57 pence, then advanced and on the date of the RNS raced to 71.50 pence ps. From memory the sp was at 60 pence the evening before the announcement. My point is that it was unlikely that the approach(es) were at a figure way below say 55 pence; I think with certainty they would not have been as low as say 45 pence. Whilst terms could not be agreed then there is no doubt in my mind that since the company has further progressed since November 2013 and rutile prices are hardening that Pala or the board would entertain anything below 50 pence. Further Pala's modus operandi seems historically have been that they expect a return of three times their investment. My calculation is that on average they have invested at 17 pence which would make a minimum of 51 pence using that argument. I am still looking for some justification as to why Pala might entertain a low figure and I cannot find one.
The bid price for KMR was in the region of 400M so they have the depth of pocket. They have a facility at the bank of circa £600M so i am expecting a sensible bid to follow if at all!
Gents I think the devil here is in the detail of the RNS see below the key words; "Discussions are at an advanced stage, however, there can be no certainty that an offer will be made or as to the terms of any such offer. As a result, shareholders are urged to take no action at this time. A further announcement will be made in due course as appropriate". As they say there can be no certainty there will be an "offer" ergo whilst they may have price pitched at 36p SRX are not regarding this as an "offer". My view is that an "offer" has to be way ahead of 36p for Pala to listen. Let us not forget this stock has been at 84p on a far worse outlook now. I think if a proper offer is to follow it has to be in the region of 84p at least what sense does anything lower make to Pala. it is interesting that Iluka suggest trading will begin again on Tuesday or before if a deal is done, so they must feel they are close?!
All very bizarre - on the one hand we are all convinced Pala would want more than £200m for Srx (total valuation so their share would be just over half that) and on the other hand talks are in 'advanced stages' Iluka's negotiating record with Kenmare was shabby I believe the end game is close and, like others here, I see it higher than 36p
I have trying to think what might be in it for Pala to accept the offer of 36 pence although every thought process that I have dictates that it would be insane. But you see the most peculiar things happen with the stock market and especially the AIM casino. However there is no harm ruling out the worst case scenario but to get there one has to consider what one is ruling out if you understand what I mean. It is the wording "advanced talks" that puzzles me. Cricketers tend to play with straight bats; however many businessmen do not.
Here endeth perhaps the most bizarre week in TRX/SRX history. Lets see what next week brings!
Pala would be crazy to accept but if they did, no way board could recommend this level
I kind of doubt the advanced talks argument. Sissay is doing karaoke in Japan currently with his mates from Toho Titanium. When I sell a company it is locked doors for days. This has a long way to run, we know as do Pala the value of the stock. The reality is that Pala directors were paying .54p for shares 18 months ago or far poorer prospects. Pala will only deal at true value so lets see what happens. Now if you said a price between 70p and £1 I would agree that somewhere between seems like fair value. DON"T forget we have a strong institutional share holder base who will decide the final price, on this occasion it is fortunate that we don't have z large number of PI's who could effectively jump at a stupid price. I reckon we let them get on with it because the II's/Pala won't sell us short.
Plus the call of the other long standing institutional holders. On the basis that Iluka have picked up stock (Friday three weeks ago for a start) they have not reached 3% and Pala did not buy or sell that stock.
So lets keep our heads. They have the resources available to them. $1bn Aussie borrowing facility. So could bid up to 3 times the current price! They returned $715M to shareholders. Lets see what transpires but i reckon 60p plus final price then its Pala's call, not ours!
they also mentioned lluka looking at kenmare-what a joke-u keep looking at kenmare lluka eh?
Something odd here.Maybe a stalking horse to get the real bidders in Sissay in Japan don't forget. Price needs to be at least double that to even start thinking about it! Plenty more to play out here I think.
ft cant even report srx properly talk about biase.... https://next.ft.com/content/b8ea03c0-aa5f-3286-937c-36f3e59cb974 imo jmo corbs:-)
smells like they far more advanced than pala were previously. in interests of shareholders? like mng/prudential etc, not a chance can see it being refused , further offers to 50p, the chinese lot from last year wanting another attempt? worlds largest, natural rutile deposit and lluka, poor siniking lluka think they can walk in and make a grab for us for a few monkey nuts. get lost lluka=-not for sale-sort your own house out first before you come to us with your begging all cash bowl
morning-sisays been having nice breakfasts hasnt he eh? wtf he playing at? http://www.theaustralian.com.au/business/businessnow/2016/07/29/iluka-in-advanced-talks-on-all-cash-offer-for-sierra-rutile/
Wot u playing at? youve been in advanced? talks and lluka suspended? your avin a laff arent you? srx-PALA!! your no where near ready to offload yet. dont forget the chinese offer last year that fell thru, not lluka, not at this stupid price. vlad iorich hardly time is it? hardly skint are you vlad-still forbes listed arent u zug plug?
NO ONE SELL A SINGLE SHARE
look back when we were 80p a share still undervalued-as gib puts it-over £1 just for a seat at table. nothing less. we certainly dont need lluka- more like they need us