RE: What if .... Price for a Takeover ??12 Nov 2020 23:02
I used to be an investor in gold miner POG Petropavlovsk. It was founded by Peter Hambro and was about to go through a huge expansion due to its new Pressure Oxidation Hub (POX).
The POX enabled it to process refractory ore. Refractory ore needs to be treated with high pressure in the POX – similar to pressure cooker.
A local miner also had refractory ore and wanted to process it using POG’s POX.
It then accumulated shares and changed the board at the AGM to control the company.
They didn’t have the majority of shares, but since most people don’t bother to vote at the AGMs, they were still able to do this.
According to UFO’s website, 67.3% of share capital is in public hands.
If a company would want to take control, they would need to convince the majority of private investors to sell up.
If this happens to us, I hope people consider the long-term value and don’t sell themselves short. GLA