RE: What are the signs of a company takeover30 Jul 2024 17:00
I agreed with a recent poster who observed that Tim would not have had to move anywhere for a licensing deal to take place. The current leadership gap is being filled by Stephen Parker as Executive Chairman. Clearly, in such a small Company, there is little succession planning from within so an external candidate is the obvious route. Tim could have had to move across due to personal reasons (which I sincerely hope isn't the case) or it is a stipulation for an acquisition with a new CEO being parachuted in once agreement is reached and signed, or, he has just had enough, or, there is a conflict of interest with a 3rd Party that requires him to step away from negotiations. Nobody will know in the short term unless an announcement is forthcoming.
I cannot see Sareum BoD accepting a low ball offer when licensing could be more lucrative so I disagree with Krustys £108m valuation (albeit a throwaway valuation comment). Any offer that the BoD receives that is considered both reasonable and credible would have to be put to shareholders. So the share would be suspended pending the outcome of any vote held at an EGM. During that suspension period, other offers could be received and also voted on. So there is a decent safety net that would prevent low ball offers being recommended and/or accepted. Once any offer is accepted by the shareholders, the share is re-admitted to AIM at the offer price and trading continues.
A Company could try purchasing via shares on the open market. That would trigger a TR-1 for 3% ownership or 5% if overseas. There are other dark arts that can be employed but that is probably taking speculation too far.
In my opinion, all remains good here with developments likely to be going on behind the scenes and covered by NDA's. In the meantime, we just need to sit it out and follow the news.
Apologies to those of you that already knew the processes.