RE: Seafox Reply13 Jul 2020 12:27
Thanks, Si547 for the link. I feel like Seafox is thinking that the SHs know nothing. I also feel like I need to clarify some points from Seafox’s letter:
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“This is after shareholders representing c.59% of GMS shares voted at the Annual General Meeting on 30 June voted”
When you act in concert with other heavyweight parties is hardly SHs sentiment. You should’ve said that you, Mazrui and Horizon didn’t agree with the resolutions.
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“We note that the price of 10 pence per share stated in our announcement of 5 May 2020, represented a premium of approximately 257% to the closing price of a GMS share on 24 April 2020”
Sounds good in paper and for those who invested at rock bottom prices. 7p and the subsequent increase to 10p for a company with 13 vessels (and I checked: 7 of them virtually brand new) was really a slap in SH’s face. Had you made a serious offer GMS potentially would’ve been yours.
I also believe that Seafox underestimated GMS heavily. They thought (like most of us) GMS would not be able to turn the ship around on time (pun intended). For this reason, they tried to get GMS as cheap as possible by taking advantage of external factors outside the company’s control. Luckily that didn’t work. That being said, you already bought 29.99% at a really cheap price. Can’t say you didn’t do a good job there and you should be happy about it.
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“We completely disagree with GMS's statement that our interests are not aligned with those of other GMS shareholders.”
Question is: can Seafox really afford GMS now and go hostile? (note: IMO 22p is not a fair price anymore). Or would they try to disrupt the company from within in order to influence the SP again, keep it low to the detriment of the rest of SH but to their own benefit? That’s another question your letter doesn’t address.
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“GMS's Board is in urgent need of further director appointments to provide the experience and know how required in order to address its recent poor performance and further deterioration of its financial position.”
Poor performance and deterioration of its financial position as of when? You clearly weren’t present in the last AGM or haven’t read any of the recent Trading Updates. I think this sentiment belongs to 2019 just like your proposal of 10p.