selling ATM stake, really?21 Jan 2019 10:59
I am not sure i agree with that idea, but maybe I am missing something?
By my understanding:
BMN will now have no problems raising funds so why let a future crown jewel go for nothing, the stake is currently worth £2M, a drop in the ocean for BMN these days. At the end of 2017 BMN would not have been able to raise the funds to grow both, and both were at the start of something big in 2017.
However, as a separate company able to raise its own funds and follow its own strategy ATM will now be a £300/£500M MC business in 2/3 years. Even with dilution that puts the remaining 5% holding at £15/25M. Hopefully though MBN will partake in the next fund raise or even increase stake?
I understand getting rid of Lemur, it really does not fit. But Vanadium and Tin have a good fit as a group company and technology focused assets..
Letting ATM go and find its own feet in Namibia was a masterstroke as BMN would have struggled to find the capital to build both businesses. Now, for a fraction of what they should get for Lemur, they could buy a significant or larger stake in a future star of Africa.
Just my opinion as a joint holder of both. Happy to here other views.