Member Info for GheeBhee

The RNS says that AFF terminated because of a derisory offer. This paper reports a different story. http://www.thehindubusinessline.com/companies/jindal-steel-drops-plan-to-buy-afferro-mining/article4389028.ece?homepage=true Makes you wonder what IMIC and their recently appointed ex AFF Director are on if the Jindal assessment has more of the truth than the AFF RNS.

So we have a tease, not a bid, from IMIC at 115. This is underpinned by a purchase by IMIC at 90 that according to the Code will underpin any bid by them within the next 12 months. We now have three RNS that imply, rather than state, there has been a bid by IMIC which is being negotiated. If AFF and IMIC are operating within the Code we will get another more specific RNS soon. If not then who knows?

It certainly gives IMIC more influence in all respects.

This doesn't rule out a hostile bid.

If HCL today can be seen as a precedent, Rule 2.6(a) of the City Code on Takeovers and Mergers (the "Code" suggests IMIC will have until 5pm on 8 Feb 2013 or 14 Feb 2013 (depending on when the clock started ticking) to announce either a firm intention to make an offer for AFF or that they do not intend to make an offer.

Rule 2.6(a) of the City Code on Takeovers and Mergers (the "Code") suggests IMIC will have until 5pm on 8 Feb 2013 or 14 Feb 2013 (depending on when the clock started ticking) to announce either a firm intention to make an offer for AFF or that they do not intend to make an offer. This deadline will only be extended with the consent of the Panel in accordance with Rule 2.6(c) of the Code.

Do we describe potential joint partners as bidders? The Company made it as clear as can be that it is looking to farm out rather than be taken over. Neither Jindal, IMIC or anyone else has declared a formal bid and, in my opinion, the market thought the IMIC kite flying offer was serious both sp would have risen (my experience is that when a company offers cash plus paper their sp rises until the deal is done and then plummets),

Yes indeed, the very words. A close period for discussions with potential partners. The market seems to have read this as being a more likely outcome than a takeover. Perhaps the arrangements that were made in Guinea are a template for what is happening in Cameroon?

Strictly speaking, this isn't a takeover period is it? IMIC floated the possibility of one and suggested a price range. AFF responded with an RNS saying it was in talks with potential partners not owners.Still, IMIC had clearly already recruited Kane and he must have a treasure chest of knowledge about AFF. Interesting times.

Talk about conflict of interest. Still, IMIC's assessment of value for AFF looks even more credible now.

Then there's the very faint possibility that AIOG have just joined the suitors themselves.

IMIC looks more and more like a front for a much bigger player. The market seems to have initially discounted it as a serious bid but I'm not so sure myself. A sustained rise towards 1.15 would indeed be good and would mark a welcome change in market sentiment..

Presumably a conflict of interest prompted the resignation, see: http://www.engineeringnews.co.za/article/company-announcement-imic-signs-relationship-agreement-with-aiog-and-concludes-first-joint-project-in-guinea-2012-04-02

Note the words "potential partners" rather than "potential owners".....

http://www.cameroononline.org/2012/12/05/indias-jindal-steel-to-invest-in-cameroon/ This article talks about Jindal's wider involvement in Cameroon and points to discussions with Afferro's wholly owned subsidiary.

I suspect there is more to come once the significance of this strategic partnership is fully taken on board and the Sierra Leone elections are out of the way.

Strategic partnership with Samsung C&T Corporation ("Samsung"). This alliance commences with an unhedged US$20m facility to provide additional funding to Cluff Gold to further the development of its portfolio of assets. The Memorandum of Understanding provides a general framework for the potential long term funding of Baomahun and other development opportunities.

...and now we know why.

Are there hydrocarbons and other precious raw materials under the Antarctic ice? Probably. It helps a country's claim to a large slice of Antarctica to have both sovereignty and administrative responsibility over the South Atlantic Islands. Sorry, no chance of desertion in my, or your, lifetime.

Well, I suppose you managed it. Rather splendid the way the SP has remained at a premium of about 60p over the subscription price and little or no immediate profit taking.