Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
Agree, whatever the PR position, delays in results, delays in meaningful updates etc the fundamentals of the business are strong & the market has it massively undervalued. I suspect there may actually be a decent week next week but the real value will be unlocked as and when some new information is released. I suspect the first thing will be an debt refinance which should see a more over the 20p mark. At the current price I don’t see much downside (15p should hopefully be the bottom of any sell off).
I should clarify, I'm not suggesting people should hypothetically accept this hypothetical bid (that won't happen anyway!), my point was more than a Chinese bid would likely only come in an effort to get the business on the cheap & the offer would be pretty unattractive to most!
No chance an offer of 50p is coming unless the share price starts to rise soon. Look at Bacanora for a more likely level of bid if the Chinese were wanting to bid at present. They bumbled along around 45p and the offer has been indicated at 67.5p (50% premium). Opening bids here I can’t imagine being more than twice current share price, but probably a higher premium than BCN, where the bidder already had a large position& JV.
Think the biggest problem is you haven’t missed news, yet other shares are more interesting to some. I’m not sure I’d want to be out of this when it starts attracting interest again, so as disappointing as recent share price performance is, surely it needs to be treated as an opportunity not a curse.
Two main ways of takeover from my understanding are (I'm not an expert btw) direct offer or scheme of arrangement. The latter will be favoured & requires 75% (of those voting) and can then force reluctant shareholders into selling (the former requires 90% to force them).
Certainly agree that many will buy to take advantage of the gap, but they are still more likely to vote to reject than the holders that sold out today at 57p (given that they are happy with 57p!!)
I suspect M&G's reaction will dictate whether the offer is increased a holding of 16% is a sizeable obstacle if they object (though if I understand correctly M&G holding does now fall as a % as 53 million more shares have been issued to gangfeng).
Similar sort of thing happened with Kaz earlier this year (though the board took it private as opposed to it being a takeover). The share price then moved ahead of the offer & had to be increased twice before acceptance. It will take M&G & some of the other larger shareholders to object with PI's , at least with a big increase in trades today it is likely those buying in at around 60p will be more likely to vote against this than those that held (& are happy selling at that level).
Gangfeng would own it. If they want the asset they could offer on that too but alternatively they may dump the shares onto the market which would basically give them 10 to 15m toward the purchase price of BCN (I assume a dump of the shares all at once would crash the price so I'm sure they'd prefer to unload slowly).
Once it goes to formal offer you will should get a notification to vote as to whether you accept to not. It should need 75% of shareholders to vote it through, it looks like this will take several months but looks a formality so in essence your choice is to sell now at 57p (or whatever price you can get on the market) and pay your dealing fee or receive the 67.5p when (if) that is formalised and accepted (& also save your trading fee!)
A big market crash with junk stocks getting wiped out. No one wants steady profits from cash generative businesses, they want the next big thing! Patience is required at the moment, boring as hell but I believe quality will win out eventually!
There is a decent you tube video on the “portfolio matters” channel that explains it. 40 minutes but summary is dilution by fund raising has destroyed share value over the years but a new captain at the helm looks to have gained back some confidence & prospects look improved (if his plan comes together). I’m not invested but watching with interest.
In fairness Ferdie, your posting history shows you are love a good pump & dump. You’re posts are all over the place and you haven’t got a clue. Good luck in timing this one but don’t be surprised if this gamble backfires.
Worth reading the terms of the convertible loan if you’re buying at these prices! Closing price above 10p for 20 days consecutively then the loans convert to equity. With the amount outstanding representing new issuance of 75m shares (78% of current issued share capital).
You’ll not see the previous years share prices for many many years (if ever), in fact it wouldn’t surprise me if this was red by the end of the day!