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I see that Luke Bryan has resigned from Kodal Minerals as Technical Director to spend more time on other mining projects. Let's hope that includes DRG too.
From the Atlantic Carbon website - deal is off:
Announcement regarding Daniel Stewart
Securities PLC (“DSS”) offer to acquire the
entire issued share capital of Atlantic Carbon
Group PLC (“ACG”)
ACG regrets to inform its shareholders that DSS was unable to
approve the offer by 31st March 2019 and, under the terms of the
offer document, the offer has now lapsed.
Consequently ACG is unable to proceed further with the application
to the UK Listing Authority to have the enlarged group’s share
capital admitted to trading on the standard segment of the main
market of the London Stock Exchange PLC.
ACG is disappointed with this outcome but continues to examine
various options for a liquidity event with a view, among other
things, to benefit ACG shareholders.
Adam Wilson
Chairman and CEO
Atlantic Carbon Group PLC
1st April 2019
I agree Dig4 - that sort of valuation would give a SP of 5-6p.
Will be interesting to see what ACG will do with the minority shareholders who have not accepted the offer, if anything.
Give them another chance to convert maybe or let them receive their share of future dividends via the subsidiary holding.
They are not paying DS just taking 90% of issued share capital. Former DS shareholders will own10% on renamed entity
garykc - Error on my part!!
At 31 Dec 2018 there were 7bn shares in issue. Another 1bn in directors share options (which I am pretty certain they will exercise) x 1.5587 = 12.5bn. This will comprise 90% of issued share capital so 12.5/9 = 13.9bn not 17bn as previously stated.
The enterprise value (based on discounted cash flows) in a recent report was put at $150m (GBP115m) in Oct 2018. I would be surprised if we didn't relist at least at this valuation. With 17bn shares in issue after the RTO that would equate to 0.65-0.70p per share. Let's hope so but it does seem too good to be true.
You should receive an email from your broker with the necessary corporate action requirement. If you want to contact them ahead of this you can use either the ticker name ATC or Atlantic Carbon Group (as they are now known as).
Corporation tax losses may only be utilised against profits from the same trade so any losses carried forward in DAN will not be available to offset against any future profits arinsig from the ACG trade. I suspect the 10% giveaway may well reflect the listing costs foregone.
Based on the October research note and the enlarged share capital after the RTO I would suggest that the SP will be a minimum of 0.45p. Hopefully they will be able to achieve a much higher relisting price based on 2018 results and projections which should be available in the prospectus. Interesting times. PS Totally ignore TW comments!!
It's actually Daniel Stewart Securities (DAN) that they are reversing into. Go onto the investors section of ACG website and all of the documents are available to read/download there. The relisting date has not yet been released but you need to take action before 28 Feb 2019.
Excellent post Regdik and has now been re-posted on ii.
Let’s remember that the research note back in October 2018 valued ACG at USD 86m. I would suggest that will be a minimum valuation for the new group. Divide that value by the number of shares in the enlarged DSS and this should be the lowest SP on a relisting. PS the nominal value of DSS shares is irrelevant.
Ignore the word "NOT'
But they need to have not made USD44m profit to wipe out past losses before any dividends can be paid out. Clearly they will not be in a position to make any dividend payments for a few years to come.
I doubt if there will be any dividend payments in the near future as the company does not have any distributable reserves. At 31 Dec 2017 we had retained losses of USD44m.
I have another delisted stock in my sipp which has been lying there for 2 years untouched. I am with AJ Bell too. The shares will remain i your sipp
One of my main concerns here is if we have lured Hope/OMF (as some people suggest) into taking the bait of a honeypot trap that is a very dangerous tactic to employ. One can only pray that the FRR management team have played this strategy correctly and is fully backed up with evidential documentation. My fingers are very firmly crossed !!
Me too. Great opportunity to buy low again
Sticking with my 2006 Escalade too until FRR delivers and will then donate it to the circus
Yes he bought 28m shares at 0.48 and 0.49p for GBP126k in May 2018.