RE: Economic Cycle6 Mar 2021 14:50
Now this is only a short story. Sig needed support. Francis had come in in February, looking around. Maybe CD and R too, as they always will be, but must have been doing due diligence on this round about then. They talk. ( he must be their man anyway? ) In the end they came up with what they did, supported by the then largest shareholder IKO., at a time when the price was teens, 20s - shaky anyway. Francis told shareholders if the CD and R proposition was not accepted, outright acquisition was one of the options. Perhaps CD and R wanted the whole thing, but at 50p. And IKO may have said, no good to me. I been supporting this for yonks, and I need 60p and a fair bit more to make it worth my while before that can work for me. And you're looking to do alright. You believe you can turn this around. So do I - it's all there, just need some cash in the bank, better management, and a bit of tarting up. And when Covid starts getting sorted, and construction takes off proper - we know what's going to happen there, helping the economy and all that - things'll improve no end. So I think it's fair to say I need at least my money back, and that's very much bottom line mind, and if you want to do just under 30% I'll support it. But no games. None of this buying 30% and then being 'forced' into a low bid. I need a bit of reassurance on that. And so will other shareholders - they're in this up to their eyeballs too. So Francis says OK, he'll write all that into a relationship agreement, with other stuff addressing their (joint ) concerns. ( board membership, maybe something on the circumstances under which a a bid may be made by CD and R, whatever else, as per my previous post )
And in the end, if not ecstatic, they were all happy, content that each would do OK, no one was going to have anybody else over, and had tea and Jaffa cakes. And C D and R got a big bill from Clifford Chance for helping. But they didn't worry, it was just a drop in the ocean.
Sign In
Follow the stocks
