Stephan Bernstein, CEO of GreenRoc, details the PFS results for the new graphite processing plant. Watch the video here.
The SoA requires a 75% acceptance by CERP shareholders. If they do not get that then BPC will make a takeover offer with the same terms but that only requires 51% acceptance for them to take control. For both parties the SoA is a administratively cheaper way of merging the companies. If BPC need to make a takeover offer to get control of CERP they would have to account for it as a separate company with external shareholders until they reached a 90% acceptance and could compulsorily buy out the remaining 10%. Once they exceed 50% they would announce they were delisting the CERP shares to encourage the remaining shareholders to take up their offer. No advice intended, just expounding a possible reason for a SoA rather than takeover.
I saw the comment that LK is irreplaceable. Obviously BPC didn't think so because he has been given a NED role whilst the rest of the CERP Board is disposed of. I have read what he is expected to do in the new organisation but it sounds like "window dressing" and I expect to see him moved out before this year is over.
The corollary to that is that this board has a number of very vocal rappers who post continually about how good this deal is in order to prop up the BPC share price for their employer because that is what underpins their takeover offer for CERP.
No need for her to comment. Schroders are NOT buying and why would they? They've been seeking to exit from CERP for several months and a takeover at this price just confirms their exit strategy.
Two weeks ago I posted on another thread that I had sold all my shares and was in cash for the forseeable future because that future was pretty obvious if you looked at the bigger picture and not at the shares you are holding. I'm afraid Saffron will register as no more than a cough in a pandemic.
If this ain't doing anything for 2 years then "sitting tight" is a waste of money, you would be better off in cash. Let me know when the low is which is. Probably after the next, much delayed, RNS I expect?
We need to look at the wider picture rather than focussing on the fundamentals here. The coronavirus is reducing economic activity, very much so in the Far east where I live, and that is now reflecting back into the market. I sold all my shares, bar PANR, over the past month and as soon as I could get to my phone I sold those too yesterday. (Unfortunately for me that was at 16.6p) Best to be in cash now and I will wait for signs of a sustained recovery in share prices rather than hold them. I think that will be measured in weeks rather than days.
The answer is in the resource update RNS, mid-Feb.
If there is a counter bid then the planned vote would go ahead unless it is pulled by the company. It would be unlikely to get 75% acceptances but those pledging their irrevocable votes would still vote for it. With the exception of Canacord they have to vote with Geopark until the y are released from that obligation. It would then be a fight to get to 50% in the timetable laid down by the Takeover Panel. If there is to be another offer that should come before the Court vote IMHO because there is no advantage to wait for the reason you suggest.
Yea, well maybe. However we don’t have to vote down the deal, another party has to make an offer before that vote and the institutions who have the large shareholdings will do that for us. (OK, for the avoidance of doubt, we might still have to vote but I suspect that vote wouldn’t go ahead because it would be doomed to fail). In the absence of any counter bid, if the SoA is not voted through then I would expect the companies to go down the agreed takeover route (as mentioned in the RNS where the hurdle would be 50% of all shares). The longer timetable might encourage another bidder to appear but I would have thought they would have had sufficient time to have decided to do so before the SoA vote.
If a counter offer is to appear then I think we would hear of it within a couple of weeks (not days). I note the scheme of arrangement requires 75% of the votes cast (not total shares) so I would expect that to pass so any counter bid needs to be made before that event. As the criteria set by the Board for this was “cash only” it now opens the way for other participants to return with a cash plus shares deal before that Arrangement is voted on. I don’t see a likely scenario where I would get less than 19.2 so I’ll wait a few weeks to see what happens.
The gas wasn’t there but he didn’t expect it based on the results up to then. You would have seen/read what happened with the first well post event and sold (I did) or used your stop loss and subsequently got out. You didn’t? Well whose fault is that? Look in the mirror and stop looking for a scapegoat. For the avoidance of doubt, I bought back in after the deal was announced because it looked value, the share price tanked and I sold on my stop loss. I will buy back when the offer is finalised.
After the closure date it may take a few days for bids to be assessed. For example, one might be a cash only bid, another cash plus shares whilst The third involves staged payments. It will be up to the Board to discuss and recommend just one of the bids and then communicate that outcome to the bidder. Then there would be a memo of understanding (exclusivity agreement or whatever they choose to call it) signed by the two companies and a RNS produced with the details for release to the market. So basically what I am saying is that it wouldn’t be the day after bids close that we would get to hear the details!
I had a look in the Accounts and it appears their options are all in the money and lapse at the end of December, ie they could take them now. All the LTIP share options would be triggered with a share price above 25p and could be taken immediately with a takeover.
You may have misunderstood my comment or far more likely I didn’t explain it very well. My Hardy’s Pinot Grigio from Spar is never going to do me any favours when compared to what Trellis gets to drink. I meant that for some shareholders who have posted here ‘drawing a line under it” means getting rid of their Sound shares through a company sale. If we are hoping for an outcome where a future drilling programme is carried out by a new licence owner and as a result of that some value might accrue to Sound then you would still need to be a Sound shareholder to benefit even if by then it had become an asset less company. I was going to say a shell company but realised some might think I had forgot to capitalise that word!
“Going long” with “contingency payments” is not really drawing a line under this is it? I expect any deal will incorporate some future payment based on results but that will mean everyone retains their Sound shares even if there is a cash distribution from the sale. I read a lot of people saying they want an end But that will only come when they sell their shareholding.
I was going to say that any future placing would not be putting shares in the hands of ‘informed institutional investors’ but I realised I would be wrong. Of course it would! ‘Informed institutional investors’ would definitely take up a deeply discounted fund raise but they would forward sell sufficient shares to get all their money back and probably a profit margin before any of us knew a fund raise was even taking place. (This happens all the time with other companies).
For example, a company that did a part disposal of assets is Empyrean Energy (EME). Look at its five year chart and on the 18th January 2016 you can see an upward spike in the share price (and volumes) when the sale of a major part of that company was announced. A month or so later the deal had been completed but the amount of distribution to shareholders wasn't confirmed until 3rd October 2016 and paid on the 14th November 2016. The three year chart shows the price falling that day as 7.9p was returned to shareholders.
Why do I keep reading that trading in SOU will be suspended whilst people vote on the deal? That is not how it works. Once an offer is announced by RNS the share will trade at a small discount to whatever the offer price might be and people will have the choice either to sell in the market or hang on to get the full offer price maybe three months or so later, after a vote/completion of the transaction/money being transferred, etc,etc. Asset sales take a long time to transact regardless of whether it is for the whole company or part of it and I don't want my money tied up for any length of time just for an addition couple of percent on the SP.
I expected a 10% fall if they failed to update markets on RP trial progress and the results provide nothing new, not even a reassuring “we are encouraged by the ongoing trial”. I really didn’t expect them to be quiet on this subject.