Member Info for QueenElvis

For those of you who do not know what a scheme of arrangement is, it is described as following - This feature has important repercussions for the utility of the scheme as a method of takeover. In particular, a scheme must be approved by those holding 75 per cent of the voting rights in the company, and thus its success depends largely on the cooperation of the target company’s board and its shareholders, making it an unrealistic vehicle for a hostile bid. A majority in number, representing 75 per cent in value of the members or class of members (as the case may be), present and voting either in person or by proxy at the shareholders’ meeting, must approve the scheme. Unlike an offer, those shares already owned by the bidder are not part of the class which is eligible to approve the scheme. If this is the case then it seems that the oligarchs must have sounded out Kazakhmys as to the acceptable level for a bid and, as has been relayed here on numerous occasions, given that KAZ paid upto 1000p per share (that’s right, 1000p) as shown in the chart below, and that the last major tranches of purchases were made at a little north of 400p, then together with the fact that they believed only 3 months ago that the shares should not be written down below 375p, we would be surprised to see them accept less than this figure. Taking this into account together with the scheme of arrangement issue in which the bidders will need KAZ’s stake to be successful, and the fact that the consortia are asking for an extension and you will begin to see why we expect a bid to be consummated towards the 375p level. http://www.spreadbetmagazine.com/blog/enrc-scheme-of-arrangement-structure-sets-up-a-knockout-bid.html

According to Spread betting magazine "There is also another major issue we see and that is if KAZ cancel the shares, which is what is likely to happen, CEO & major shareholder Vladimir Kim will automatically exceed the 29.99% holding level and so it would trigger an automatic bid requirement by him for KAZ according to the UK takeover rules! What do you do if you are Suleiman Kerimov? Simple - you bid for KAZ to act as a blocking vote in the deal should KAZ decide to accept a stupidly low price from ENRC’s bidding consortia. Ekibastuz could be sold off and the copper division re-listed at a value likely 2-3 times the current embedded value. " http://www.spreadbetmagazine.com/blog/enrc-kaz-initial-thoughts-update.html

Paul Stomach - I don't like copying other folks' posts without their consent from one forum to another but have a look at what durby is saying on interactive investor.

alias on lse thinks kaz will get the vote. If that's the case then because kaz's stake in enrc is so large i.e. 26% then it's my understanding that they would need to put any enrc formal takeover proposal to their own shareholders and presumably the kaz government which currently holds a 26% in kaz plc would be excluded from that vote because they are part of the bidding consortium?. The proposed bid for enrc would allow kaz to get rid of the govt as a shareholder which would increase the kaz plc free float and surely means they don't need to be the govt's puppet on a string. As a kaz shareholder as well as an enrc shareholder, I personally would take a very dim view of kaz if they didn't attempt to extract as much value for enrc as possible.

If the article is credible - a big if. Seems to lack any flesh. "kaz have signalled privately" to whom? The Sunday Times lol. A few weeks ago, the "Sunday Times" did a three page hatchet job spread on enrc and there was a poster, Miningman, on here telling me it would be tin hat time on the Monday which turned out to be bunkum just as I predicted because there was nothing new in the 3 pages from the "Sunday Times" As for kaz, the poster durby on iii doesn't seem to think they are eligible to vote and weren't you hinting at that too bunkermad.

Seems to me, though I can't tell for sure, that you are pinning your hopes on the share prices slumping if a takeover by one source or another doesn't go ahead. But I think the oligarchs are desperate for this to go ahead for them at this time. If not they might have to sell 7% of their shares low ball to satisfy this free float thingy. Or at any rate whatever happens they are facing dilution of their stakes and a chance for some other shareholders to get their hands on some shares low ball at their expense. And from what I read, an exit from the 100 doesn't get round this indices rule. What you think Vlad? Boo Radleys Wake Up http://www.youtube.com/watch?v=WumSB0vZ5l8

That's me away to enjoy the holiday weekend as I didn't make anything of May Day due to the poor weather then in Scotland. But I can't help wondering if yours is just a sustained academic interest here. You surely can't be a shareholder here? Anyhow keep waving the red flag but this particular bull is offski just now.

Oh live up to the memory of your namesake and have a healthy distrust of all forms of autocracy including Western managements. I have to say that I find your scaremongering here very amusing. How could alias lose his/her whole shirt or blouse here. Are you seriously trying to suggest that the consortium is going to come back with an offer which is not an improvement on the proposed one which has already been rejected out of hand and at a time when enrc are under scrutiny on all sides and when MPs on the business select committee are asking for directors of ENRC to appear before them to explain their London listings. Okay a formal offer might not materialise from the consortium and they will be required to walk away for 6 months which does not preclude any other interested party stepping forward. We've already had a poster on here earlier this week with some rumour allegedly from the SB magazine claiming that the oligarchs had decided to walk away. The share price took a bit of a tumble as an immediate result of that and regained ground as soon as the rumour was squashed later in the day. How likely are the oligarchs to walk away. If they do the 7% free float shorfall needs to be addressed by the end of this year but, even if they did walk away, neither alias, Kerimov nor the other minor shareholders will have lost their entire shirt. Keep your eye on Kerimov I say.

Was just thinking - wouldn't want to be out of this one over the long weekend. Just in case. Good luck all.

Very much the start of the holiday weekend so I think all the bbs will be quiet. Oddly enough this is usually a holiday Friday in our schools but the kids lost it last year for 2 days for the Queen's Diamond Jubilee in June instead. . The late May holiday Friday hasn't been reinstated this year. Shame. Have a good long weekend all.

both dogs. I would agree with that with the proviso that the entire sector seems to be a dog at the moment. All down to individual investment strategy though ie do you buy in boom times or do you buy or top up when they are on the floor.

He's got enough ready cash to buy and sell the lot of them put together.

the oligarchs have walked away then that 7% free float shortfall gets addressed and they lose the iron grip they have had of this company. Might be no bad thing depending on which side of the fence if any you are sitting on.

Kaz PLC need to demonstrate to the investment community that they are not sitting in anybody's pockets - it shouldn't be too difficult for them to do that if the proposed bid for enrc meant that they were able to shake free from a 26% kaz govt. holding in kaz

I'll buy you a beer if we get £3.60.

Hope this helps http://www.whoswholegal.com/news/features/article/29552/public-takeover-offers-versus-schemes-arrangement - originally posted on 13th May. The Russians are good at chess. I don't think any of the bidding trio are Russian but Sulley is.

I wasn't reprimanding but just pointing out that few contributors to lse have given any opinion on what they personally thought the takeover price could be - there were maybe one or two exceptions though! Right if you have been reading this site as thoroughly as you say then your homework for this evening lol is to read back a few weeks and get yourself au fait with schemes of arrangement and public takeovers. I'll be looking in later to see you demonstrating your knowledge and putting any scaremongers in their places. Good luck

Are kaz plc getting a vote in your opinion?

bunker -welcome to the bb. Can I just say to you that I have never publicly expressed any viewpoint about the likely takeover price here though I privately hope for as much as can be extracted. It might be worth both of you checking back further on the bb for info on the difference between schemes of arrangement and public takeovers. Good evening all but first bbq weather here in Scotland.

Takeover Panel rules Kaz PLC is a party to the offer. Quite handy having instant access to £7 billion.