RE: Hmm…..9 Aug 2022 17:44
wow CWWX - a lot of info there - still dumbstruck as to how poorly lots of it seems to have been managed over the last 5 months or so, and how the offers and interest from May (and in fact UCG's) have just been not given a chance or gone back to whereas UMMCs "UMMC’s initial non-binding offer did not provide a monetary figure but expressed their desire to ensure that creditors are paid in full" so a defunct company is paying out 100% on distressed bonds (I trade fixed income and never seen this given its effectively defaulted and UMMC surely owns a load of the debt)..
Bidder 1. Bidder 1 made an indicative proposal to purchase all outstanding capital stock and other equity interests in the Company in the amount of US$488m. Bidder 2. Bidder 2 offered between US$700-730m for all gold mining assets and other subsidiaries of the Company, which was based on net debt of the Company of US$500m and other various provisions of US$50m and the equity value of US$150-US$180m.
Bidder 2 indicated that they felt that this represented up to 72% premium to the current (at the time) market capitalization of the Company on the London Stock Exchange. However, on the binding offer submission deadline date, Bidder 2 advised that they were not able to secure financing for the transaction and withdrew from the process.
UMMC. UMMC’s initial non-binding offer did not provide a monetary figure but expressed their desire to ensure that creditors are paid in full. In expressing this, UMMC noted that they believed that the underlying assets of the Company do not exceed the total debt of Companies within the Group in the amount of approximately US$628m.
Bidder 4. Bidder 4 expressed an interest in acquiring the assets of the Company but did not provide a monetary value to the expression of interest. It should also be noted that Bidder 4 provided its indicative offer on 16 May 2022, being the date for final binding offers. As a result of this, Bidder 4 confirmed that they would not be in a position to carry out due diligence in the timeframe permitted.
On 7 July 2022, UGC, the Company’s largest shareholder, made a preliminary non-binding offer to purchase the Company’s shares, procure repayment of the Term Loan and Facilities, and restructure the Group’s other debt. The Company and the Administrators invited UGC to discuss this offer but UGC did not pursue it. Under UGC’s preliminary non-binding offer: • UGC would procure full immediate repayment of outstanding sums due under the Term Loan (to UMMC) and the Facilities (to Nordic). • UGC would buy out the remaining minority shareholders at “a current (preceding to announcement of this proposal) trading price of the Shares”. • The 2022 Notes and the Convertible Bonds should be transferred to a UGC subsidiary “incorporated in [a] jurisdiction outside of UK, EU, US and Russia”, with the Company’s guarantee terminated. Subsequent to this transfer, this debt would be “restructured and repaid”. • UGC would repay other outsta
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