Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
If anyone has a spare ten minutes, have a look what Agarwal did with Vedanta in 2018. At that time he was a majority shareholder (just over 50%), and his associates owned another 15%.
In 2018 he made an offer of 825p to take the company private (around a 14% premium to the trailing 3 month average). At the time, this was met with disdain by shareholders who thought the true value of the company was much more. Plenty of forums and message boards at the time reported that if the buyout wasn't approved at the EGM, Agarwal would just delist the company instead.
That sale went through, and here we are 5 years later in a VERY similar situation.
Except it looks like Agarwal has been a bit more intelligent - by threatening a delisting (which would happen anyway if he wanted a takeover), he would have been fully aware of the impact on the SP due to II's being unable to hold, and PI's panic selling.
Agarwal could now, at any point, make a cash offer to share sweep to take 100% control.
And then what - well... I'm not sure what the market rules are, but I would assume he would need majority of the remaining 18% shareholders to approve. So he comes out and offers 100p ... Who isn't going to accept that when the alternative is far, far more uncertain.
Also, Agarwal has been very vocal in the past about his dislike for the London markets due to undervaluing companies in comparison to stocks in other countries. Maybe he's now using this to his advantage?
I don't think this story has even started yet.
Positive trading today for the first time since the news. The bid price slowly ticked up throughout the day suggesting shares were in short supply.
This has the potential to do an ECHO...
I've spent a large part of today doing a fair amount of DD - I only posted for transparency.
You're free to read and disregard my posts as you feel necessary - it won't change my outlook and I won't lose any sleep over you wanting me to lose money.
We're all in this game to make a profit.
0.29 looked like the bottom, got in just above that.
Too much upside here now - ECHO showed what happens when large sellers are out. This will turn and this will 2/3 bag over the coming month - potentially far more if you factor in any positive news surrounding dividend.
Anil clearly has a plan - I wondered earlier if he could attempt to buy out the remaining 15% and take the company private.
Lots of risk here clearly, but the potential to multibag isn't something you often see with a company like this - hugely profitable with year on year growth.
Good luck anyway - whatever you all decide to do!
I'm doing what most savvy investors do... Research and due diligence.
Is that wrong?
Nope, not bought or sold.
But the only upside here is if the BOD release an RNS confirming dividend payments will continue.. and/or reverse the delisting decision.
Both things seem unlikely at this stage
Might as well burn your pound notes.
It won't just be your supper well done if you're buying shares here.... You'll be toast too.
Magmanus, why do you constantly ignore what people are telling you - the vote to delist will go ahead as the director is a majority shareholder.
Is there not a suggestion that the 80% shareholder has sold some of his holding?
Not sure how you can otherwise justify a drop of this nature unless the MMs are fishing for stops.
If the majority shareholder retains his 80% I can't see the SP being here for long IF we have clarity on future dividends being paid
Are you stupid?
Looks like Sky News broke the news of multiple offers half an hour before the company was forced to RNS it
Not great in terms of transparency
Have we any idea if the company will continue to pay dividends to holders? Or does an AIM cancellation remove that responsibility?
If Aggarwal holds 80% shares in a company that was valued at £1bn in June last year - he was sat on a £800m pot.
Why now does he think it sensible to delist and drop the SP to 33p and lose £750m of value to himself personally?
Got me stumped, this one.
Genuine question from a potential re-investor here.. buy price currently 1.58 which is tempting..
Being a non cash generative business currently... Do we know what QBTs most recently announced cash balance was? Was sort of cash burn do they have?
The board thought it prudent to obtain funding? No s**t, you had £8k at the end of March.
Horrendous company this.
Depends what you are assuming LO's end goal is - looks like they're getting rid of 3/4% of the company each day, so you'd assume a Monday or /Tuesday if they're looking to clear the lot.
Given the current volume today (which isn't huge), the rise to the 40's and 50's may come next week if and when the herd arrive