Member Info for CAW1

I think we have big ticks against all of these - especially like the time line here

said: “The letter of intent in an M&A deal is extremely important for ensuring the likelihood of a favorable deal for a seller. Once the letter of intent is signed, the leverage typically swings to the buyer.” This is because the buyer will typically require a “no shop” clause or exclusivity provision prohibiting the seller from talking to any other bidders for a period of time. The key terms to negotiate in the letter of intent include the following:

The price, and whether it will be paid all cash up front, all stock (including the type of stock), or part promissory notes.
Any adjustments to the price and how these adjustments will be calculated (such as for working capital adjustments at the closing or for a “cash free/debt free” deal).
The scope and length of any exclusivity/ no shop provision (which is always in the best interests of the seller to keep this as short as possible, such as 14 to 21 days).
The non-binding nature of the terms (excluding with respect to confidentiality and exclusivity).‘

https://www.forbes.com/sites/allbusiness/2015/04/29/22-mistakes-made-by-sellers-in-mergers-and-acquisitions/?sh=62016b5f28e9

GLA

Some were questioning no win no fee and retainer

‘The amount of any upfront retainer payable to the banker (it is common that the retainer is waived and the advisor or banker is paid nothing unless a transaction is successfully completed).’

GLA

People questioned why when eua are selling

‘Neglecting the day-to-day operation of the business during the M&A process. The process of selling a company will be hugely distracting and time consuming. Nevertheless, management must keep its eye on the ball and ensure that the business continues to grow and operate efficiently in line with projections given to the buyer. One of the worst things that can happen in an M&A process is for the selling company’s financial situation to deteriorate during the process. This may kill the deal or result in the buyer renegotiating price and terms.‘

GLA

Another good read if you ignore first couple of paragraphs- I hope we are in stage 3+

‘Each bidder is then requested at this stage to submit a non-binding, indicative offer on the basis of the framework defined in the process letter to the seller. The defined framework enables the comparison of the offers submitted by the different bidders.

In a subsequent second stage the circle of bidders is usually reduced by taking the indicative offers into account. The remaining potential buyers are granted access to a data room which is frequently made online via special access rights, i.e. a virtual data room, which contains detailed information on the target company. This enables the bidders to carry out their own due diligence and establish a solid basis for a purchase decision. The bidder receives the possibility to ask questions in a co ordinated process directly to the seller and his advisors. In addition, management meetings are agreed which then take place.

Finally, the bidders receive a sale and purchase agreement drawn up by the seller which is placed in the data room. The remaining bidders are requested within a limited period to send a binding offer for the purchase of the company together with proposals for amendments to the draft purchase contract. The binding offer should, depending on the method of determination, usually include the specific estimation of the bidder for the value of the enterprise, the purchase price (equity value) after deduction of all net financial liabilities (net debt) and its composition.

Only a few bidders are invited to participate in the third and final stage. They receive a preferred bidder status and obtain access to further confidential information which was not communicated in the previous stage and take part in the final part of the negotiations. Exclusive negotiation rights are granted to a bidder only for a limited period of time. Then the fully negotiated purchase contract is concluded with the successful bidder.’

https://www.roedl.com/insights/investing-in-germany/mergers-aquisitions-controlled-bidding-procedure-limited-auction

GLA

My understanding is that ig cfd’s are in a separate ig pool that is funded by ig.
99% of ig cfd’s are long so if those with cfd’s that will close will either have to find another provider for cfd’s or buy on the market.
GLA imo

You should have used a better agent like ubs to filter the crap
GLA

Good read - multiple non-binding offers put us in driving seat

‘Most importantly, the whole objective of the sales process is to create an auction whereby all of the buyers would compete. Accepting the first offer circumvents this important step in creating a superior transaction. It violates the basis rule of M&A deals – the power of multiple buyers.

Versailles Group firmly believes that if a seller has one buyer, they have no choice. If the seller has two buyers, they have a dilemma. It’s only with three or more buyers does the seller have true choice. With only one buyer, the seller has no leverage, which means that the closing takes longer and the buyer will feel free to keep negotiating the deal or even just walk away. Thus, many investment bankers say “one buyer is no buyer.”‘

https://www.versaillesgroup.com/m-and-a-blog/ma-deals-the-power-of-multiple-buyers/

GLA

Evening all, update on Alex Twitter. You were correct Mac it is big!

West Kytlym Satellite update. Nothing that we don't know, continued earth stripping & ore stockpiling as per the companies confirmation yesterday. Zone measures circa 180m Linear, great to see continued operations.
https://mobile.twitter.com/R1EXG/status/1363177583152619527
GLA

So I think ig were 99% long so would I be correct that they fear volatility in sp rising then
GLA

Not sure on IG change if someone can explain in layman terms please
Am I right that all open long/short cfd’s need to close no matter what the sp is come next Friday?
If true apart from robbing those with cfd’s open will it effect sp, am I right that these cfd’s are in a ig pool and not on the market
GLA

Evening Ethio
Eua site logs time trade hits so if delayed uses time announced and then prints against spread algo at that time. Also if after 16:30 and delayed logs zero as spread
Lse logs correct trade time against spread at that time. And does so during the day as well.
GLA

Personally think somehow we are being played by the II’s. Yes they are adding but also shorting us to do so. Yes people are slicing/selling but there is a bigger force dragging us down.
I don’t think it is a coincidence that ggp are in the same decline cycle.
Things will rotate I believe when they are ready
GLA

The word ‘advanced’ was used
Who knows but at least something positive for the week
GLA

Mac - agree
I hope Keith has a fair chunk of the 65m left after AC's are taken out of the 105m
GLA

I smell something in the air

montyboz Premium Member

Posted in: EUA

Posts: 1,280

Price: 24.00

No Opinion

RE: Stillwater - Sibanye31 Jan 2021 22:59

My profit was £450,000 so not as high as it was or could have been but a tidy sum. The question is do I buy back in below 12p or not or do I take note of the warning AC gave us all?

GLA

Dotting the I's crossing the T's
Getting the house in order, no one likes to leave a mess when they hand the keys over.
GLA

Not sure JT
this site now showing 1m mia - not bad accumulation over 1 hour
GLA

About 100k for mediums
GLA

JT this one aswell
19-Feb-21 11:11:51 22.66666 540,246 Sell* 23.00 23.50 122.46k
GLA

Yes - buyer wants to hit the ground running
BAU until sale
GLA