RE: Impact of a JV or takeover on HE1 shareholders11 Aug 2024 16:21
SM69, thos are valid questions, and or concerns.
Here's my attempt:-
1. Joint Venture with a Major Industry Player:
Its important the BoD negotiate hard and strike a good deal. For example, if they choose to give away say 30% for £100m, then market will rightly assume total MC of £300m, throw in confidence, future earning and market might be kind and value HE1 at £400m. If JV is with a leading operator, market will look at it more favourably.
2. Takeover by a Larger Company (All-Cash Deal):
Depends on each investors circumstances, someone in their 30's might like the idea of long term investment, perhaps with annual dividends and med/long term SP rise. On the other hand, someone in their 60's might like cash in hand now.
3. Takeover with a Share Swap Deal:
I think you mean we get taken over, instead of cash buy-out, we get shares in the buyer, it does happen, and can be lucrative. However, HE1 is a minnow, we're not talking multi billion takeover, therefore I don't expect this scanrio to happen (my view only).
4. Joint Venture with a Government or Local Entity:
In my view, unlikely, the government will not want to invest, they rather let others invest and reap the rewards, call it royalty or whatever has or will be agreed in the mining contract.
Long-Term Stability: Such a JV could provide long-term stability, appealing to risk-averse investors and leading to a stable or rising share price.
5. Hostile Takeover Attempt:
In my view, unlikely, unless of course some entity has been stake building. There's more likelihood of outright offer in some shape or form. TBH, in this scenario, old or new management doesn't come into play, we'll get our money, or some may decide to stay put.
Kammy