LEAF.L Share Price (LEAF)

Is this a good investment?

I've taken a look at why there hasn't been a mandatory bid for the 44% of shares not owned by Res Privata and found the following:

Takeover regulations
The Company is incorporated in the Cayman Islands and, accordingly, transactions in shares of the Company are not subject to, and shareholders in the Company will not have the protection afforded by, the provisions of the UK’s City Code on Takeovers and Mergers. However, the Articles contain provisions that are similar to elements of Rule 9 of the UK’s City Code.

Last Updated: 08.08.14

My interpretation of this is that the company, whilst registered in the Cayman Islands, will follow the UK Takeover Code. Well, they'll follow the code until such time as there's actually a requirement to follow the code!

On a separate note, I read elsewhere that a shell company is worth about £500,000 . That's about £4.36 for each current Leaf share.

It strikes me that Res Privata will have a couple of ways to make money:

They may be able to sell VREC and Escalona where Leaf has failed

The losses from VREC, Escalona, and others may have value to other clean energy to use to reduce their tax liability

They could be creating a shell to either sell on or reverse an enterprise of their own into

They may be able to trim some of the windup costs and retain the remaining cash.

There's only 114,600 shares and Res Privata has 56% of them. If they can save/make £1 million then £560,000 goes to them, or £8.72 a share.

They'll probably have to make an offer for the 44% of shares they don't currently own.

The board need 75% of shareholders to vote to delist. I don't think RP will be voting for a windup.

I think I'll hang on to the few shares I have and see what happens.

I've not been able to trade the shares since the last payout.

Worth a punt then. A few hundred quid maybe for a chance at 10 bags? What do you think Teela?

Well, this is interesting.

VREC and Escalona have been marked down to zero.

The annual report still hasn't been published.

We're being extolled to sell our remaining shares in the market.

And…

Res Privata NV, a hedge fund has popped up with a TR1 stating they now own 56.1639% of the shares. I guess they see value somewhere.

Now that they own over 30%, will they bid for the remainder?
If they can pick up the whole company for £250,000 then scrap the management bonuses they could make around 10x their investment.

We might be going to get a few interesting days.