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Well the lenders havent pulled out otherwise the deal would be off.... A one week extension "suggests" that there may only be the finer contractual detail to resolve and conclude The extension means that Vulcan wantt to make an offer...subject to their lenders loan agreement...it seems
Extension.... no later than 5.00 p.m. (London time) on 6 August 2018,
No doubt released after close of trade
5pm deadline today....looks like last minute announcement Given that the AGM has been put back...maybe they asked for an extension
TheMega1 - thanks for this info. Does this mean that Anil Agarwal is likely to proceed with his offer of £8.25 per share? If so, he should get a move on as I gather that he must proceed or withdraw by 31 July.
Pokerchips, not so sure on the shorts - normal practice is to go long on the target and short the bidder.
Very dangerous to go short on the target!
Anil Agarwal to raise up to $1.1 billion from foreign banks
Jul 26, 2018, 07.58 AM IST
MUMBAI: Billionaire Anil Agarwal, the owner of Vedanta Resources that has announced delisting of the resources conglomerate from the London Stock Exchange (LSE), will raise up to $1.1 billion from three or four foreign banks that could include Standard Chartered Bank and Credit Suisse.
Volcan Investments, the privately-owned company of the Indian metals maven, will use the funds to purchase the outstanding stock from public shareholders on the LSE, three people familiar with the matter told ET. Vedanta’s spokesperson in India did not respond to ET’s questionnaire till the time of going to press.
An email sent to Credit Suisse remained unanswered. Standard Chartered declined to comment.
The loans are likely to be of three-to-five-year maturities and would be priced after adding a spread, or mark-up, to the US dollar-based London Interbank Offered Rate (LIBOR). The spread may be in the range of 100 to 125 basis points.
https://m.economictimes.com/industry/indl-goods/svs/steel/anil-agarwal-to-raise-up-to-1-1-billion-from-foreign-banks/articleshow/65142330.cms
I think these are possibly being shorted ..sold ..and then buy back for a nice profit
the question is...if Vulcan is buying up the sales ..then there could be short squeeze with limited buy back available
Who knows
I watched the MRO GKN saga and it wasn't until the last day that GKN shot up to the 461 offer. It traded under it by a good 5-8% for quite a while.
FXPO meh not much growth in that compared to VED so need another growth recovery story.
The market is pricing in a small amount of uncertainity that is all, share is trading now at 4 to 5% discount. Not a lot of money to the sheer wealth of this group, look at the dividends alone that have been paid over the years to Mr. Agarwal.
FXPO looks really cheap today, which was my best share of last year...back in there.
Don't think the stinking banks/funds have confidence here hence the weaker than offer price?
I am not so sure that he is right when he says all of the London shareholders are happy??
Anil Agarwal, Founder and Chairman, Vedanta, discusses metal prices, Tuticorin plant closure, delisting from London bourse and other issues:
httpS://economictimes.indiatimes.com/markets/expert-view/we-have-15-30-margin-in-all-sectors-and-the-lowest-cost-of-production-anil-agarwal/articleshow/65069042.cms
VED Resources shareholders are not entitled to the value of the assets ...only a small % ...which is why the actual NAV isnt as high as some would expect VULCAN have paid much more than 825p for their average price to acquire 67% already
VED have looked at it and have suggested they are happy for Vulcan to make an offer I dont really see Vulcan backing out and I dont see much change in the offer price which I think will come next week They must have put the idea across to the remaining institutional holders who may have given a price But we all have to wait of course
I think that this is a shabby offer for shareholders in that it looks like Anil Agarwal had waited until the share price was low to nominate a low price for Vedanta for the rest of the shares, at a time when the increasing value is just starting to come out of Vedanta’s assets, which we had all been waiting for.
Perhaps a figure at least abreast of 20% (not 14%) might be more equitable to contemplate for all concerned.
little drop today. Looks like the market is uncertain as ro the completion of the takeover. Could this buy out be falling through? Let's hope so....
Following receipt of an initial proposal from Volcan, the Independent Committee was formed to review and evaluate that proposal, and it decided to engage, with the support of its advisers, in negotiations with Volcan.
The announcement of any firm intention to make an offer pursuant to Rule 2.7 of the Code (a "Firm Offer") is conditional on the satisfaction or waiver (as applicable) of the Pre-Conditions (as defined below).
The Independent Committee has indicated to Volcan that it supports the Possible Offer and intends to recommend a Firm Offer, if made on terms in accordance with the Total Offer Value set out herein,to Vedanta's independent shareholders.
So Vulcan must be going through the accounts....there do seem to be some that feel the offer is too low
AGM of 13th August postponed until further notice due to the possible Vulcan Offer
Two weeks passed since the possibility of an offer and now the AGM postponed
Something is going on ...this really needs to offer to be put forward...confidence is slipping
In accordance with Rule 2.6(a) of the Code, Volcan must, by no later than 5.00 p.m. (London time) on 30 July 2018, either announce a firm intention to make an offer, subject to conditions or pre-conditions if relevant, for Vedanta in accordance with Rule 2.7 of the Code, or announce that it does not intend to make an offer for Vedanta, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This deadline will only be extended with the consent of the UK Panel on Takeovers and Mergers (the "Panel") in accordance with Rule 2.6(c) of the Code.
So there is a chance that we could receive our dividend as per Friday ex div but there COULD still be 10 days to wait before knowing whether Vulcan has made an official offer
It would be pretty grim if we wait for the div and then they dont make the offer for whatever reason
I believe they will and it would be nice to have that before the ex div day
but..who knows
Only that the offer might not go through. On balance a good risk/reward proposition at these levels. As to when the deal goes through; maybe 2 months at a guess.
Today I can buy these at £8.05. It goes ex divi on the 19th.The offer price combined with the divi is £8.56.
So 50p per share instant profit.When will Vedanta pay the offer and divi is accepted,anyone know?
I cant see this falling through...825p isnt that much more than the 3 month SP average ...and seeing as they are only having to buy 33% of the shares I doubt they would now reduce the offer.
Many holders will I suspect have sold and have now invested elsewhere and looking to make up their "lost" div and more elsewhere...
The formal offer must surely come next week ....I wonder if Vulcan have been buying up the shares sold ?