RE: Explanation please re takeover25 Apr 2020 09:55
A takeover approach will typically (not always) come in the form of a Recommended Offer, proposed by the Plc board to the shareholders. It may be cash, or cash and shares, or other instruments, in the acquiring company. That is, unless it's a hostile bid (i.e. not a recommended offer!) where the hunter has to buy shares on the open market (they will start with any disaffected institutional investors). In the hostile version the hunter may first try to gain control of proxy votes at an AGM/EGM. For the friendly variety, much more civilized, the Recommended Offer is put to shareholders. You get a vote but it won't count for much as the larger shareholders (typically these can be investment funds, say) will have been sounded out quietly before and often the T/O, and many will have given irrevocable undertakings to sell. It typically (not always) won't be put to the vote till it's basically a done deal. In either scenario, once the committed shares are greater than x% (and I don't know that %, it's set out in company law and varies according to circumstances and type of offer etc), the whole thing goes ahead and all shares in the market (whichever way you voted), are bought (at the same price as everyone else) and the Plc is de-listed from AIM/LSE, as it won't be a public company any more. It'll probably continue to operate as wholly owned Ltd Co subsidiary of the acquirer, for a while, till they integrate it. Money (or other instruments if it was part paper) from your original shares will turn up in your account at your broker, or go to wherever you have designated proceeds to be sent. That's about it. I recommend you look up any basics about anything like this on investopedia dot com - very good for the gist of how anything financial works.
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