Member Info for Edster

last paragraph in this article makes me feel reassured. We will be defo looking above 3.00. Hey, can't blame them for trying :-) ENRC, which is also 26%-owned by fellow miner Kazakhmys, has now said that it received an indicative proposal from the consortium this week which "materially undervalues" the firm. While ENRC has not specified a price, Bloomberg reported that the founding shareholders are looking at an offer price of less than 300p per share, according to people close to the matter. The stock was down 6.87% to 275p in afternoon trade from Thursday's close of 295.3p. ENRC has now given the consortium until June 3rd to either announce a firm intention to make an offer or walk away. "We believe the current proposal materially undervalues ENRC, and we will use the extension to seek an improved and formal proposal," said Mohsen Khalil, the Chairman of the independent committee of the ENRC board. "The independent committee is committed to serving the best interests of minority shareholders through a professional, transparent and rigorous process, which incorporates the highest standards and principles of independence and integrity."

I think this is a simple one to call. The drop today was a shake out of investors who came in at 270+ looking for a short term gain. The Bloomberg article spooked the market. Everybody wants a deal here but 280ish was a **** take. What's clear is Khas want their fair value... So this will land between 320 minimum and 360 with a slight premium on the Khaz book value. What an afternoon - but we live to fight another day. SP will creep up to 290 before the deal with near certainty of at least not losing money.

Something's happened?

Agree sector is down big today. ENRC slightly more than some, slightly less than some. Some smaller retail investors loosing their nerve maybe? Are their any big broker trades standing out does anyone know?

Sorry i meant 5.29 and 8.50?

Any idea why the last 2 broker ratings over the last couple of days have target prices of £5.25and £8.25 given the current situation?

Hi there, I find your posts really helpful. I am a newish SIPP investor (still on a learning curve) but I read with regards to take over rules the Offeree is bound to pay the shareholder the highest SP reached in the previous 3 months to the offer deadline - which by my reckoning by looking at the charts is where the SP roughly stood on the 19th Feb. I may be wrong on this so views welcome.

http://www.ft.com/cms/s/0/467985e6-b981-11e2-9a9f-00144feabdc0.html#axzz2Syr0IMfv

Good post, I don't think it's an all or nothing play though. Although its technically possible I can't see Khaz wanting to write down another circa 1.5 billion and destroy its reputation in the FTSE 250. But I do agree that it's worth watching very closely next week. A question - what happens if there is an offer? Does the SP offer become public knowledge straight away and does trading get suspended upon the RNS?

Here's my call and why I went in. I'd be surprised if a takeover doesn't happen and based on FTSE rules the sp should be minimum 3.78. If an offer doesn't happen there will be a short term hit for sure. However, as I've said before corruption or no corruption the company is a mineral producing giant and the laws of supply and demand dictate along with a return to global growth we will at least see a return to £4 plus eventually. This is why the oligarchs want it so bad. And in terms of debt, given the company is turning over billions a year and has a huge asset base there doesn't seam to be anything to really loose sleep over. Sure these guys seam a bit crooked but worst case is they backhanded a few presidents. Is that really worse than eliciting child labour, destroying economies through corrupt financial practices like other FTSE companies from the west. I'm not saying what they have done is not wrong but what I am saying is that when the media guys having nothing else to say markets soon forget and get back to business of looking at fundamentals. Just my view :-)

Interesting post. Next week things will look a lot clearer I imagine :-)

Looking at the fundamentals, it feels like ENRC is a good solid revenue generating business with a solid long term strategy. If you were a major shareholder why would you want to leave it in the FTSE so exposed. Makes good sense to buy out and get on with the real business of mining. A question though - if the consortium don't buy out, how will the SP perform in the short to mid term?