Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
I have ISA shares in WDS and S32 : both of these are listed in Australia but have secondary listings in London (S32 also in South Africa). TGA has a secondary listing in London. The platinum company is (as far as I can see) listed ONLY in South Africa so maybe excluded from ISA - but if they do split it off for issuing shares to all AAL holders, they may get a secondary listing for that purpose.
The latest offer of 0.886 BHP shares equates to a measly £20.72 for an AAL share worth £26.57 : there is no way I would value SA sell-offs anywhere near £6. I dare say after a hostile takeover BHP could sell those off, but the value of a forced sale will not be current SA prices. If I get a vote it is NO.
Forget copper; this is an aluminium company and is rocketing up without pause. About time too, but still a way to go.
So the "additional value of the offer" is the value you wish to put in dubious spin-offs. The shareholder feedback indicates a preference for a 3rd simpler bid without spin-offs, which will then of course allow a direct comparison. If it is in simple pro-rata the current share prices, it is a no-brainer: I would far rather have my assets under BHP management. We may have to decide how much we think that is worth.
It is interesting to consider the situation from the point of view of the many of those, like myself, who are significant holders (in terms of our own portfolios) of both BHP and AAL. What is best for us?
Assuming an offer of 3/4 of a BHP share for 1 AAL, that's on the face of it giving me £18 for the £27 I have in AAL, which is absurd. IF they asked me I would refuse, but I am obviously not understanding it. Could somebody please explain the logic and arithmetic of how BHP thinks a share offer worth so much?
Fog, buffa - I agree with you. If 20% of the shares were bought back then that money has been lost from the "bank account" so the company is now worth 20% less than it was. Therefore the value of your share has not gone up, and the buy-back has done nothing for you. All it does is alter the metrics by which directors get their pay. You may own a bigger percentage of the company, but the company is a shrinking asset.
Let doubters look at it this way : when you have a 20% dividend you expect the share price to drop 20% on ex-div day. When you have a 20% buyback, does the share price increase 20%?
Platinum is not dead yet, so why offload it? Probably because they want to offload South Africa, viewing the country as not conducive to running a business effectively. Unfortunately that is where the PGMs lie. If they do offload it, like Thungela, I hope I get some shares.
I think the value of mothballing is it is an admission that the board made a gross error in taking the development on without the funds to do the job. They now recognize their incompetence and are pleading for someone else to buy the company before existing shareholders give them the push. The sooner the better, either way.
Yes, grim. "We think it might be worth something sometime, but not now, so we are hanging onto the mine and hoping someone else will buy it later".
Another dead mine with no prospects. Time to sell AAL?
I am not one of the largest shareholders, so they did not ask my opinion :) , but I am easy on this matter. If woke still rules, then the split companies can do better separately, and I will hold both, but I would prefer one conglomerate.
There is no excuse for laziness. You could read results RNSs available on this web site; you could look at RIO's web site. If you cannot be bothered to do these things you should not be investing.
All this fuss with AAL and BHP - there's a lot to be said for iron as well, and don't forget RIO is more than just iron with exciting newer prospects in various places. Hold all 3 forever and pile in what you can.
@ drfiter : "have just calculated my dividend (72c)payout versus what was paid and yes it’s 30% less"
30% less than what? 72 US cents was the full dividend with no WHT and that equates to GBP 0.562983 at the prevailing conversion rate (as in the RNS) and that is what I received in the UK.
Yes, me too. It does seem too big a drop given that AAL will refuse. I hope.
I don't want platinum. I want to be selective and have more BHP shares.
If you reinvested in London, yes, no matter where the original shares were bought, dividends from the new shares will not have WHT.