Chris Heminway, Exec-Chair at Time To ACT, explains why now is the right time for the Group to IPO. Watch the video here.
#Zwartkops in theory the answer is yes as I understand the process.
Typically an acquiring company will make a series of offers to the board of directors of the target company to purchase them which are met with short shrift. The acquiring company then has a number of means by which to acquire 51% of the target company's shareholding.
1. Tender Offer: This involves making an offer to the shareholders over the heads of the board at an attractive premium on the existing share price. If the majority of the shareholders wish to accept this offer they can then place pressure on the board of shareholders to accept the offer.
2. Proxy Vote: This involves the acquiring company approaching the largest shareholders i.e. Polar Capital LLP 8% and Tivkah Management LLC 4%. They would form a consortia to persuade other stockholders to allow them to use their shares' proxy votes. If the consortia acquired enough proxies, it can use them to vote to accept the offer. In this instance given the largest shareholders own 12% they would require to obtain 39% additional shareholding.
3. Creeping Offer / Takeover : Finally this would involve the acquiring company to build a stake in the target company in the open market by buying up shares with a view to building a majority shareholding. Given there are approximately 200 Million shares in issue and that approximately 3.5 Million shares traded daily we would start see this via a significant increase in the SP and the acquiring company (BP) are obligated to declare when they exceed a 3% stake in the target company.
I understand once they reach 30% stakeholding the acquiring company are obliged to tender an offer for the company in the UK.
To summarise I think that this would be unlikely in the instance of Synairgen as the largest shareholder only (I say only lol) has an 8% stake in the total shareholding. If the largest shareholder had say 30% then it may be more feasible and it is for this reason I think it was prudent for RM and the board to be opposed to any one investor taking all the placing shares.
This is just an opinion and I am happy to stand corrected if I am incorrect. Good question though #Zwartkops as it has crossed my mind. GLA
@Ricki
You most definitely are not alone as we have all made similar mistakes at some point in time. Making sell decisions exercising these with granularity in tranches is key i.e. 25% or 50% sells as this allows you to follow the trend without being taken out when the sp rebounds.
For what it's worth when I have found myself in this position previously I have often made the mistake of trying to wait until the sp reaches my previous exit point. More often than not you 'miss the bus' and the stock can trade away from you.
I would follow the advice of the good people who have replied and try to get back in at an acceptable loss which will soon be forgotten when you are back in profit. Good luck.
Yes I would like to fully echo my thanks to #pmjh for his tireless and selfless research which has been a guiding light through this year for me and a number of my friends on this BB invested in SNG.
*The grand scheme of things* is very much aligned to my own thinking around patience in reaching our end point gaining a head of steam at each notable milestone. I don't often comment on this BB but I do wish there was less emphasis on the minute by minute fluctuations in the SP and the "Are we nearly there yet Dad?" posts from the back seat.
RM (Dad) and his management team know what they are taking their prized asset and he is a steady pair of hands on the wheel. He knows how to get to our final destination so have another Opal Fruit (Sorry kids Starburst) and give the "Eye Spy" a rest ;-) GLA and Happy New Year!
If I may offer my own perspective the next RNS regarding first dosing on P3 trial and any further significant news will all come in due course and we shouldn't panic unnecessarily if this happens tomorrow or early in January. I fully respect and appreciate that we all want to see the SP rise significantly, our investment to benefit those in most need from a humanitarian perspective and finally provide a return to our portfolios.
This will all happen (hopefully if the trial is successful) in the fullness of time. We should all take great comfort that today's news of the AZ vaccine approval has done little to diminish the SP and rather than act as a sell signal it has demonstrated that investors have seen it as an opportunity to buy in / average down. IMO that is a significant milestone that illustrates the investor dynamic has changed. With the exception of Polar Capital (and their percentage is minimal relative to those historically), there are no major investors that can artificially influence the share price and lots of shares in the sticky hands of next generation investors.
I anticipated a 10% potential drop to the SP based on the technicals but what I took great comfort from was the speed at which the SP rebounded demonstrating great resilience. GLA
If there were to be a takeover the timing of this would have been after the P2 results and prior to the placing funding being secured. I have no doubt that RM will have been courted by BP at this point and that any TO proposition would not have reflected their valuation of the company which from memory had a market cap of around £300-350m.
Why given that RM has the funding to see through P3 trials would he entertain a TO at this point at these levels? Quite simply he wouldn't. I appreciate that to see a TO at this point would deliver a quicker return on all of our investments but it would be at a substantially lower level that its 'potential' value. It's for this reason that I am prepared to hold and see this to the end of P3 come what may as I have faith in RM and SNG-001 as a treatment.
I agree with mattw007 To place the SP @ 175p for a takeover is an absolutely ridiculous statement given this would value the company at £350m based on the current shares in issue of approximately 200m. Given Synairgen have the placing funding and will shortly commence P3 trials there is no way IMO that RM & Co would entertain a TO at these levels. They are aware of the eventual value of the company and won't agree a takeover until the asset value has been both clinical proven and realised at the end of hopefully successful P3 trials.
I appreciate that the SP is at extremely frustratingly low levels following the placing but we all need to be patient for RM to deliver the next stages in the evolution of SNG-001. Forget hoping for the next RNS to boost the share price from its current levels. Hold until the management team have had an opportunity to deliver some meaningful results and we will all be rewarded for our patience. Just an opinion.