The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Posted my theory last night on what might happen here. P&D dont know as I said last night couldn't buy when the spread was 130/150p last night seemed a little strange. Yes most on here yesterday here for the day trade. Time will tell but if they dont decide to take it to 90% still a good result as they are more likely to move the project along. DYOR before investing
Just a thought (this is the analyst in me that drives me to do this) Under UK law, section 979 of the Companies Act 2006 compulsory acquisition is only possible once you have 90% of the shares in the company. So they need to either purchase a further 13.265m share on the open market or do a deal with the remaining small shareholders who as at 25th May 2010 (company annual report) are as follows Cipher 06 Llc 15,883,000 1.58 HSBC Stockbroker Services 8,017,277 0.80 Thomas Kaplan Family 7,000,000 0.70 Pitchford R A Esq. 6,400,000 0.64 Waterhouse Securities 6,394,240 0.64 Central African Mining & Exploration Co Plc 6,222,222 0.62 Barclays Stockbrokers Limited 5,422,070 0.54 Total of these is about 55m leaving about 58m unaccounted for. Several of those are probably nominee accounts of PIs so you have Cipher, Kaplan and Pitchford who hold sizeable holdings and if they sell out to New Dawn then they can compulsorily mop up the remaining shares under similar conditions. Bad for remaining shareholders. If however they are going to do it on the open market then the lowest they can offer remaining shareholders is the highest price they pay for these open market purchases. It was difficult buying today so lets assume they have 80% of the 10.22m shares traded today (being pretty generous here) then they would have grabbed 8.18m shares. They still need a further 5m shares to get them to the 90%. I think they would have more than that to go but being over cautious. Even when the price was rising it was impossible to get any shares (even when they were offering them at 1.5p) why wouldn’t they just offload to a PI having already bought at 1.2p. They weren’t interested in selling just buying. So if you are lucky enough to hold these there may still be a compulsory offer to come based on the highest price they have had to pay in the market and some upside on the share price if they are trying to get to 90%. We may still see some fluctuations here. Or they may choose to leave the remaining shares on AIM (not sure if they have to make a formal bid for the company). For the relevant companies act section see page 525 Section 979 of the act http://www.opsi.gov.uk/acts/acts2006/pdf/ukpga_20060046_en.pdf For info to see this 90% rule in action check out recent RNS for MNL’s recent acquisition http://www.investegate.co.uk/Article.aspx?id=20100616170014P5917I could be wrong so DYOR guys. Lets see what tomorrow brings Congrats to all those that made money on this today
Yeh not touching it either but been fun to watch
2 x 130p 2 x 145
third time lucky perhaps hmmm dropping now
aahhh cant get any
should got in o the drop doh GC well spotted mate just amazing
that was fun to watch
lets do the Can-Can The cancan is danced in 2/4 time, and is now usually performed on stage in chorus-line style
at 2p would cost the only another 2.2m
may be a script offer could be more news today they must be ready with either takeout or news as to intentions gl to those taken a punt
With that sized holding is a compulsory takeover required. The major shareholders must be confident selling at 0.29p which is below the market price over the last three months. Only 11% left to take out the company could they be buying in the open market or will they have to make a formal bid?
Agree with you not great /. not bad Little lower then I expected as they had been ahead of the year end profitability at the halfway stage last year. As I stated before the September contract likely to impact this financial year as it was a 12 month contract so only 3 months into it at end of Decemeber My main interest was the MgO refocus and what they had to say about that as thats where the growth will be for the company. "Meanwhile, the Company will concentrate more resources in developing its bio-degradable plastics joint venture, PPC, its MgO project, and its catalytic refinery project with Sinopec in hope of achieving a breakthrough in one of these new businesses while maintaining a stable income from FGD in 2010. " Not an earth shattering statement and had hoped for a little more info about their progress. Niow await news on any further contracts. Unlike in previous years they seem to be providing details of signifcant contracts when they happen instead of at year end and interim statements. Hopefully this trend will continue otherwise we are in for a long spells of no info. Costs still under control which bdes well for the future. less then 6% shares available with remaining shares held by major shareholders so any positive news will see this move very quickly.
Bit of liquidity this time too good volumes today
Surprised at lack of interest here. Second half of the year usually good for the company and just signed a 10m contract (1/3 of current market cap) and half of last years revenue alone forgetting any other work in progress.
Good volume and these are now on a lot more radars. Very good contract win hoping for more of the same. Think I will top slice over 20p and let the rest ride on a free carry.
They are due anytime now - last year they were out on the 4th June so due anytime
Up 82% Annual result due soon which may show more contracts. Bring it on stalising not as big a treeshake as would have expected.
Glad its come good thats two big conttracts RMB43m and now this one RMB54m and shows confidence as this is an existing client Another one with a big contract win was ROM yesterday. Contract 10m (over 12 months) last years turnover was 19.7m so contract half last years total already. Also tighly held so one to watch GL the faithful
There it is a new contract probably wasn't finalsied last week hence the no new news