George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
Hello Bruce I resisted this deal all the way, however I am unsure what the pre-cursor to this temporary suspension is. Are you in a position to help please?
I have made quite a few inputs into this debate and I really have enjoyed all contributions whether I agree with them or not. During the course of this debate I have learnt a lot from my fellow investors and like roger.ed will miss you all. Best wishes to everyone for the future. For the record I was always against this scheme/offer and although I would be well in the money there are other principles I believe you must uphold if one believe's in them. This offer is in my view is derisory and totally unfair in terms of balance sheet valuation, thus my wife and I have just REJECTED the deal through our dealers HL.
Having read this link I have learnt that CVR stands for Cumulative Vendor Risk http://www.forbes.com/sites/greatspeculations/2011/05/09/shadowy-shares-the-dark-side-of-contingent-value-rights/
nickyg - You are right in the sense that investing is swings and roundabouts and I am one of the lucky ones that will be well in the money. My main gripe is that we have a company in FTO that some small investors (myself included) have invested in for the long term. FTO is asset rich if the balance sheet is correct; thus the true return from our endeavours is being snatched away. I do not call 10p generous (your wording is a double negative which is the same interpretation) when the value of the of the company is well in excess of 20p per share (I believe previous estimates have put it circa 28p per share however I stand to be corrected). The share price started its downwards momentum when the BOD announced that no dividend was to be paid and this is where we are. I am resigned to a fait accompli, however I cannot interpret this offer as the board doing me a favour; granted they will be left holding the consequences of the Armenian adventure, I only hope the Armenians are as mercenary to FTO as the BOD has been to us small investors.
I totally agree with your take on this. At the moment I am researching some proposal documents that involves both the FSA and FCA, they are: CP12\2, CP12\25 and CP13\15. At the time of writing, it is my understanding that the process has not yet been completed. The documents refer to premium listed companies on the LSE with some of the brief being further protection for minority shareholders. Guess what? In the middle of this FTO abandons premium listing for standard listing. My gut feeling suggested that something was up and I was tempted to liquidate my holding, I wish I had now. Some of my fellow minority investors have disagreed with what I have wrote in earlier contributions on this subject to this chat line, much as I respect their comments, I have yet to be convinced that my view is off target. This proposed buy out has been thoroughly planned.
Perhaps his increased share holding could be his dividend re-invested?
This man is reported to be the richest man in Malaysia with a fortune of $14.7 billion as of Feb 2012 (Forbes). He must see something in this company, perhaps he could be our white knight or indeed the Pale Rider in the Clint Eastwood movie.
I totally agree, however a major big time shareholder could possibly fetter the running of the company e.g they could stop them from de-listing for a start, also I believe but not certain that all special resolutions require a 75% vote. I could be completely wrong here I am not a corporate lawyer. The foregoing could hinder their ambitions and convince them that their only solution is to sell the company. Again all speculation.
Hello nickyg I am very pleased for you and sincerely welcome your gains after all that is what we are in it for. Like you, I ventured into FTO many years ago and have to admit I have deployed the wrong strategy in terms of maximising my returns on these shares; although I am still very comfortably in the money having bought a large tranche of them for 1-2p and held onto them; I would possibly have made a lot more using your method when aggregated. I should be more objective and take my profit on what I could obtain now which is no small sum; however the derisory nature of this offer vis a vis the value of FTO has turned into a running sore that is eating away in my psyche. Perhaps it is clouding my judgement which is not a good thing. To conclude on a more positive note, I wish you and your family all the very best for 2015 and I extend this greeting to ALL of my fellow investors in FTO. You are a grand lot.
nickyg If FTO has been planning this for eons I assume that this foresight has enabled you to sell any shares you own long before it hit its current price?
Hello shatter Thank you for those kind words. One thing - please point out to me where I said FTO was a dead donkey? Kind regards Intergalactic
Del44, once again you have given an interesting insight into the FTO proposed buyout. Looking at the financial position of this company and bearing in mind the Armenian adventure and its porential impact on future balance sheets; this must still be quite a viable company, otherwise the Chui brothers would not wish to take it inhouse and increase their burden of risk. Could it be that they are doing this in order that some bigger company does not try to obtain the 44% sometime in the future. They would stilll be the majority shareholders, however it does not mean they have full control of the company e.g as in our postion where they need 75% acceptance to achieve their objective. Something is not right here. Perhaps I am being too much of a drama queen and looking for some conspiracy that is not there. I know that my former company was always sensitive to keeping its share price high in order to deter outside predators seeking inroads.
You are assuming FTO is a dead donkey; I think it is very much alive and thriving. Would the Chui brothers buy a dead donkey?
DoubleD7 you have beaten me to this scenario well done, I have just posted a thread on broadly what you are intimating. I am 100% behind you, I do not want to roll over on my back like a dog and feel grateful for this morsel that has been offered; it is derisory and an insult to us private investors; it is what I term corporate mugging.
I have to say that this buyout process of the small shareholders in FTO is becoming quite stimulating; I always believe that one can trawl some positives out of a negative situation and reading and deliberating over the various inputs into the foregoing has enriched me no end. Indeed it is helping me to become a better private investor. What if the outcome is NO; I would be very interested in peoples views in terms of what may happen e.g. increased bid, potential takeover by a third party, who could be waiting in the wings?, would the the Chui brothers sell at 10p per share as they feel it is a fair offer to us, et al. I appreciate this is speculation but investing is largely speculation anyway and a post NO event should be addressed to help complete the picture.
nickyg there is nothing wrong in general on your take on FTO in my opinion, however I do not agree with your position in this situation. You could say "A bird in the hand is worth two in a bush", it depends on what you are prepared to settle for. I will fight to the bitter end to get more out of this company because I feel that we have not got a fair deal as some more astute investors than me have concluded from their thorough financial analysis of the balance sheet et al; even though I am comfortably in the money and I mean comfortably. It is not true that there were no big boys in it, Legal and General held a stake in FTO and sold after FTO went from Premium LSE listing to Standard status. I do not consider Legal and General a small boy so to speak. Have a good 2015 nickyg and I would like to extend this goodwill to all my fellow private investors.
Some readers to this chat line may well be getting fed up with my inputs on the sale of FTO. for which I apologise to those that feel that way. I do not disagree with the buyout in fact I will be glad to see the back of FTO. Howeve this consotium is not offering a fair price with respect to the value and potential of this company. If we vote no do you think they will walk away ? I don't think so.
Bruce you may be right, I am not clairvoyant, but what I do believe is that the minority shareholders should not give this lot an easy ride. Also chris211's comments suggest that it is not the done deal you may predict. LET US BE RESILIENT AND VOTE NO!!!
Excellent news chris211 thank you. We need too blow this deal in its initial form right out the water and send a message to these opportunists.
I am pleased for you nickyg and I respect (though disagree) with your opinion. Like you, I am well up on this investment; however I cannot take this offer lying down and will not unless I am forced to sell. A lot of investors are losing out and there is a chance that we can help these people, plus at the same time up our gains (yes their is self interest in my approach). When you bid for a company you surely must have something in reserve in case of initial rejection, you would not show your best hand at the outset would you??