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Indian elections + Indian stock market rise… if this forced buyout fell through there would be a bounce to £1 + but sadly shareholder value isn’t a priority.

Maybe I’m reading the ‘strip’ wrong but all morning it looked to me as if the market makers were holding the price down at –4% while the Pro’s bought in at 24p. It was ticking along nicely until 12:14.

This probably explains why the sp has been kept in such a tight range. Preventing speculators from trading because the range is too small to make a worthwhile profit. When an institution sells & the stock falls to a new trading range, the MMs usually spike the price down to allow Pro’s to average down, so as not to make a loss, but this only happened once in Feb at about 55p. Re Sirlosealotmark1 I hope thing aren’t too bad. Thing is that this is not investing like it use to be 20 year or so ago. It’s ruthless trading & the hole set up is to extract money off retail investors.

Anyone that bought this at 40 to 42p prior to the RI & took up the rights, has an average / terp figure of 27 to 28p. So the current null & spike downs could be viewed as a buying opportunity. When the MM / Pro manipulation period has ended, when they have picked up enough cheap stock, this will rise.

If agreed, it depends on whether the funding is already in place. If it needs to be raised & finalized, your looking at anything up to about 3 months plus, before your broker will receive the cash for distribution.

This has been kept in a tight range below 68p for a month. Preventing shareholders from averaging down & later selling at 68p. Now there is Pro buying & the bid is 69.65p. What’s the betting this moves above 70p next week after shareholders have agreed to hand over their shares at 70p ? There is no clarity on this, it’s disgraceful. Is the deal going ahead or is it rejected, is the funding in place or will shareholders have to wait months for payment, it’s any ones guess.

Does anyone know if the funds are in place to fund this 'forced acquistion’ ? The acceptance / refusal date is this Friday 2nd of May but there is no detail re when payments will be made, if the offer is accepted. Could shareholders be waiting months for their payment ?

The Terp calculation is around 27 pence

Some UK listed stocks should come with wealth risk notices or not be allowed to list bin the first place.

The Co has temporarily suspended it’s share buy back programme. Something to do with Indian regulations.

Thanks very much for the reply, Rusty

Does anyone know about the UK free float rules? as I understand it, essr needed to increase this to retain trading on the lse. It was temporally wavered because of the buy out proposal. But what happens if they can’t raise the £210m + or can’t agree on a suitable price, will the stock be suspended ?

The range was limited at 68p & the pullbacks to 65-61-55 was only Pro manipulation to try to pick up cheap stock. But now that it has broken above 70p does this indicate that an improved offer of 75p is likely ?. Can the funding be obtained ? if not will the free float be increased & Essr continue to trade ? We may find out next week.

What do you expect, if you want to pick the stock up cheap your not going to put out good results & RNS. It’s amazing that this is being allowed to happen & even more amazing that people are taking notice. There is constant AT buy’s at low levels. Someone is certainly interested in picking the stock up cheap, this is early days yet & not a dune deal.

Good points, any idea, at what price ENRC bought it’s shares ?

Looking at the response-to-speculation RNS & the statement that there is no certainty that the current considerations will lead to any offer being made + that EGF is part of a consortium. One can conclude that they are worried regarding the recent price rise & will find a higher offer difficult to fund. If the sp moves much above 70p over the next few weeks, this offer might be off the table. An easy move if the Pro’s want to put a stop to this.

The point I was making earlier is that if 75p had a credible chance the sp would be at that level now. The fact that it isn’t means that the Pro’s & I’m sure all of us, consider it to be too low. EGF needs to come up with a better offer price, something north of £1 might stand a chance ? All of this interest can only help to improve the sp.

No flurry of AT buy’s this morning. If 75p is a dune deal then why are the Pro’s not buying ? Just usual trading & a bit of healthy profit taking, it’s business as usual. Is EGF’s offer not being taken seriously ?.

For this to be accepted it needs 75% approval from the 23.2% of the lse listing, shareholders. This is excluding the brothers 78% stake, as they are not allowed to vote. It’s not a dune deal & may not be approved without an increased offer.

If share’s are purchased over the next few weeks & the sp rises to say £1, surly EGF will have to match that price ? Essr is still trading & there’s nothing to stop the sp going up. Also I doubt the major fund holders will accept 75p