Got to be one of the best potential AIM stocks, with only 97m shares in issue, recent rises will soon be improved upon once all the massive buy orders are filled, including the late trade of 670m just appeared...phew !!
AND Finance deal with Talaxis for $12m fully funded with no dilution. No wonder this was the most heavily traded stock when news dropped on Friday?
William Dawes, Chief Executive Officer of Mkango, said: "This transaction is transformational for Mkango and for Malawi, and is a further endorsement of the Company's strategy and potential. This Agreement significantly strengthens our balance sheet whilst ensuring that the Company is fully funded to progress Songwe and our collaboration with Metalysis. It also comes at a pivotal time in the rare earth market with a very strong demand outlook for rare earths such as neodymium and praseodymium used in permanent magnets for electric vehicles, wind turbines and other clean technology applications. We are very excited to be working with Talaxis, and moving forward with the bankable feasibility study for Songwe and Phase II of the research and development programme with Metalysis."
Daniel Mamadou, Executive Director of Talaxis said: "The global push to decarbonize the economy is creating pressure on the supply of critical elements to the green tech sector. Environmental regulation and the policy changes are driving the price of technology metals. Supported by our access to global logistics capabilities, an extensive marketing network and a team of experienced professionals, Talaxis is pleased to enter into this agreement, which further strengthens our supply chain specialized in tech metal products."
Yes, also sorry for the loss of this company.
I didnt send any forms off, but presume I will get the money for the shares sometime! They are in an Isa with Hargreaves Lansdown. I Would be glad if someone would tell me when....
Both my holdings now gone. I feel like I've lost an old friend; ALK always put value in my portfolio, always grew. Not many companies like that about today (except for the other company I've been holding for as long, which has gone the same way). I'm sure there's another company like it out there, but in this day and age, it's going to be hard to identify it.
Invest long, and prosper, as Mr Spock might have said if he'd invested in Alkane Energy.
Couldn't agree more, the state of energy supply, the SP and profits were only going one way.
Will be interesting if BB are also eyeing up Egdon? Any thoughts ?
Last day of trading likely to be tomorrow, so any counter offer unlikely now.
This is an absolutely standard thing to happen in these circumstances. Shyould you worry about it? Of course! It's *designed* to make you act.
The UK takeover code is more about getting a tidy, liveable, outcome in reasonable time than it is about taking care of every last little private investor like us. To that end, companies are allowed to use both a carrot *and* a stick. The carrot being the offer price, the stick the threat that if you don't take the offer, you may never be able to sell the shares again.
Although takeovers almost always specify some large proportion of acceptances as being required, this can be changed by the bidder at any time (with notice). If they initially specify 90% that's because that's what they would *like*, but they may well be prepared to live with less.
As has been said, the takeover can continue as long as they get more than 50%, but they must maintain a listing for the shares. At 70% they can delist the shares, effectively trapping anyone who hasn't accepted. At this point, since the company is a subsidiary, they can start doing all the nice things with transfer pricing that means it will never make a profit again, so say goodbye to you divvies. Yes, there are protections for minority shareholders, but they aren't great.
70% is the point where the stick becomes available, and the normal thing to do if the offer is declared unconditional in all respects, at over 70%, is to accept or sell in the market before you get trapped.
This may not clarify as I have not read the prospectus in detail. My understanding of the Uk rules were that if you own over 30% you have to make an offer for the rest at the highest price you have paid, At 50% you have won, but the remaining shares can still exist, but dont have to be listed. I have been caught out by this several times decades ago as the new owners can do things such as consolidate the shares effectively getting your shares for nothing. This tends to happen when there are a lot of smaller share holdings, and I dont expect to happen here. They can also stop Alkane paying dividends. At 90% they can compulsorarily purchase the remainder.
I haven't looked at the rules in detail this century as I have been burnt by these takeovers in the 80s/90s and have since made calls based upon this understanding.
If I read the offer document correctly the takeover was subject to becoming unconditional only if BB got at least 90% of Alkane shares, they have 77.93%
So why is it now unconditional? And threatening to delist if you dont agree to sell
Conditions to the offer
The following is a summary of the Conditions to the Offer. The detailed Conditions (and the extent to which any of these are capable of being waived at the sole discretion of Barbican) are set out in Appendix I. The Offer will be conditional upon:
acceptances received of not less than 90 per cent. of the Alkane Shares to which the Offer relates;
the United Kingdom Secretary of State for Energy and Climate Change confirming in writing that it does not intend (i) to revoke or recommend the revocation of any interest in any petroleum exploration and development, appraisal or production licence in the United Kingdom held by any member of the Alkane Group; or (ii) to require a further change of control of any such member, in each case as result of the implementation of the Offer; and
fulfilment of those other Conditions listed in Appendix I to this announcement.
I'm just a bit worried about this statement in the offer. anyone offer an opinion it?
Intention to De-list Alkane Shares from Trading on AIM
Following the Offer becoming or being declared unconditional in all respects, Barbican intends to seek to cancel the admission of Alkane Shares to trading on AIM as soon as possible thereafter (''Cancellation''). In accordance with AIM Rule 41, on 16 September 2015 Alkane gave notice of the intended Cancellation which, subject to the Offer becoming unconditional in all respects, will take place at least 5 business days thereafter. Alkane will provide further details of the Cancellation timetable in due course although, for the avoidance of doubt, if the Offer does not become unconditional in all respects Cancellation will not take place.
The Cancellation will significantly reduce the liquidity and marketability of Alkane Shares.
It seems BB have not yet got to 80%, let alone the 90% they need, so have extended the offer. Sadly, they have not upped the price, nor has a better bidder yet entered the scene. Is it too late, or could a rival scoop up the remaining 20+% and still win the day? Personally, I still think the offer price is well on the low side, but is it game over?
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