Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
I guess PJ won't buy anymore until he knows whether his compulsory offer is accepted or not. If rejected, as we expect (hope), I presume he can make his own higher offer (2p please) or buy more shares and make a new offer at that share purchase price. This is assuming he really does want the company. I could be completely wrong (as usual). If he just wanted to invest more and the rules forced him to make the offer, then the prospects are still that the SP should rise from here.
LOL. She's worth a bob or two as well. PJ only cares about making money for PJ. I'm also expecting SP to rise and a 1p offer to be eventually accepted......but I'm hoping for 2p.
Peter Jones sells PJ Media to retailer Expansys (2010) for £10's millions (I've seen £38m to £50m quoted in reports). Get Expansys to re-locate it's offices to Peter Jones premises (2011) to get rental income. Take a hefty share of Expansys shares investing a fraction of PJ Media profit. While Expansys has increased it's future profitability with global contracts co-incidentally some one off exceptional cost payments and poor performance in some areas of the business have worried the general market and trashed the SP. PJ swoops in to buy the whole company (which by now has more revenue streams than PJ Media had) for a fraction of it's real worth. No other real major shareholders so PJ will just bide his time and get an offer accepted or buy shares until he has 75% and delist. Whatever happend PJ will get the company for less total cost to him, than Expansys paid him for PJ Media. Rebrand/split the aquisition and sell off for a nice £100m's profit. Happy days for PJ. That's how to do business.
Let's say L&G paid about 3p for their 14% which cost them about £5m but they only just got back £500k for about 10%. Doesn't seem to make sense for L&G does it?
My average is just over 1.5p
Cheers. Well two years ago I was expecting this to get to 4 or 5p by now, so I am feeling a bit ripped off with what's gone on. But if PJ offers me 2p now I would take that and call it quits :-)
Another question is why did L&G sell anyway and why just enough so that PJ could make this play? Surely L&G knew what he was up to when they sold him their shares. Do you know how much L&G originally paid for their holdings?
Cheers, I like your soothing words :-) I gather you have a stack of these and I guess you are already in profit.... Do you have a target price? Or what SP do you think you will you start selling at if the SP continues to rise?
That is really bad news about Legal and General. http://www.theqca.com/information-centre/markets/1441/delisting-from-aim-issues-arising.thtml With no other major shareholders to keep hold of 25%, if PJ's offer is not accepted he will probably have little problem getting the 75% he needs to de-list the company. It seems those shareholders left would effectively get nothing. The SP may rise a bit as he buys but then more and more holders will sell and as he approaches 75% the SP will dive. Whatever happens PJ will get this company for a fraction of it's potential worth. You've got to admire him really.
I think we invested at the same time pre the rise to 2.2p. And we both probably added on the initial fall convinced the prospects were still good. I'm really sorry, I didn't realize you had so much invested. I would lose a few K if I had to sell at the offer. The thing is, it's looking like we were correct. The prospects were good but (legally of course) there seem to have been some actions made that have pushed down the SP to bargain basement prices so that PJ can do this. I would feel a bit more comfortable if Legal and General had more than 20% of the shares. But then I guess PJ wouldn't be doing this now. He's a smart guy but I feel he's cheating holders out of cash for any offer below 2p. In fact when at 2.2p two years ago with all the Contract prospects 5p looked on cards.....
Re misinterpretation of top up. Satz, not quite the same is it realted to Death's point? The question should be : would you pay 500K for a house when someone else only offered 400K? But the answer would be anyway dependent on whether you think it will be work 500K+ in the near future.
Sorry, cynic here again. If the company had been run as expected 2 years ago the SP would be 5p+ but SP has been driven down with questionable decisions. Decisions made by the board to some agenda presumably known to Jones. Surely with his stake in the company he can't have been oblivious to what was going on regarding exceptional costs etc. I presume the board will accept the offer that is good for those individuals concerned related to other companies they may be involved with and their future income related to Jones future proposals. But even the current SP is a steal. Anything less than 2p is an insult to investors. Whatever happens, I expect Jones will get this company at a steal and make huge profits from it in future. He is a very smart cookie when it comes to making money........and to go with that he is good looking and very tall. I hate him ;-)
Yeah, I took my eye off the ball. I wasn't really awake to the City Code on Takeovers and Mergers rule and that Jones could do this. It would be better If the rule said the offer had to be made at the average SP of all purchases. Then happy days... I need 1p+ to get my money back.
Maybe I'm cynical, or missing something... but two years ago all seemed positive re contracts etc. and since then a series of bad news RNS's, apparent cock ups and cash write offs have screwed the SP. And now Jones makes this move to own the company at basically a rock bottom price.......
Why 0.46p? Shouldn't the offer be 0.525p according to the 12 month rule?
That's why he is a multi-millionaire. He will make another fortune out of this company in years to come. Those who invested over the last few years will lose....
Under the City Code on Takeovers and Mergers (the "Code"), Peter Jones is obliged to make the Mandatory Offer in cash, at a price per EXPANSYS Share no lower than the highest price paid in any purchase of EXPANSYS Shares by Peter Jones or any party acting in concert with him, in the last twelve months. So even though he paid 2p+ years ago he can offer the low SP he paid recently.
A few possibilities (only thoughts)..... 1. A general feeling that it is overvalued. 2. A target of £70 was predicted, the target was hit so selling started. 3. Shorters have been dying to jump in since £30..... But, based on past performance, I guess it will find a support level and be £100 next year (then that would be £4million I could have had)....
WelshmenT, cheers for doing the maths, I didn't realize ;-) Two guys, I still work with, and myself bought these in 2003, at prices ranging from 9p to 15p. We all sold in 2004 with profits at SP ranging from 32p to 38p......happy days. We completely forgot about them until one day in 2011 one of the guys came in the office cursing when he spotted them at £25. We could all have practically retired there and then if we had kept our shares :-( The other guys in our office love winding us about it now.....ah well, you've got to laugh.......sob......sob..
london and Fiesta for the info and feedback.