Where the target is subject to the UK Takeover Code, one of the key areas where restrictions will apply (and an area where bidders may inadvertently trigger obligations or impose restrictions in relation to a possible future takeover offer) is the acquisition of interests in its securities. These restrictions include (amongst other things):
an obligation (subject to certain limited exceptions) to make a mandatory cash offer for the remaining shares of the company where a person (together with their concert parties): (i) acquires an interest in shares which carry 30 per cent or more of the voting rights of a company or (ii) holds an interest in shares which carry between 30 and 50 per cent of the voting rights and makes a further acquisition of an interest in shares
The Requisitioner's letter further informed the Company that the Requisitioners are the registered holders of a total of 29,133,662 ordinary shares of GBP0.001 par value each in the capital of the Company, which represents 51.78% of the Company's issued ordinary share capital.
DQE is currently seeking advice in relation to the validity of the purported requisition and the Company will make a further announcement in due course.
Some positives appear to be that 'OL Master Limited, a private credit fund managed by OCP Asia (Hong Kong) Limited (the "Investor")' evidently sees a big future for DQE and/or DQE Mauritius to stump up $50m. Debt clearance & inward investment...'The net proceeds from the issue of the Bonds will be used to fund the development of more than 20 owned-IP and co-production projects currently in the pipeline for production over the next two years, for the repayment of certain debts amounting to approximately US$7.21 million (INR 445.1 million) and for general working capital purposes'.
'Within 36 months of the Closing Date, DQE Mauritius must use best endeavours to undertake a liquidity event, such as a trade sale of DQE Mauritius or the listing/IPO of DQE Mauritius on the NASDAQ, or other similar stock exchange acceptable to the Majority Bondholders (being those holding 66 ¨ø per cent. or more of the aggregate principal amount outstanding under the Bonds) ("Liquidity Event"). In either case, the Liquidity Event, whether a listing/IPO or trade sale, must yield a 25 per cent. per annum IRR should the Bondholders convert the Bonds into Shares and sell them through the Liquidity Event (together, a "Qualified Liquidity Event").
Negatives for me are the uncertainties derived from confusion. For example 'cancellation from trading on AIM'?
Nonetheless, the market appears to like it judging by the sp thus far & increased liquidity.
Sadly don't know how you can link the pdf presentation, unless it already appears on the web somewhere.
Answer from Rashida is useful and in some ways disappointing. If the debt collection team really did their job, the receivables would not increase by 28% from the previous year. To arrange alternative finance (bank loans or otherwise) when you have not been collecting the receivables is hardly a sensible way to run the business. Oct 2014 to receive the receipts is a long wait, considering they have already been outstanding for a while. The receivables outstanding dwarfs the revenue in the last Annual Report to 31st Mar 2014. Very disappointing.
Steve, would be interested if you find any other useful information.
I tried one further time the other day to obtain a response from DQE in response to my queries , which were basically regarding the SP differential between India and LSE / AIM plus the outstanding receivables issue.
I received a reply this morning from Rashida Adenwala - Director Finance & Investor Relations for DQE.
All thoughts and feedback on her response would be appreciated,.
It would seem that her previous reply to me had been lost somewhere in the wonders of Cyberspace so problem solved.
She has given me explicit permission to circulate her reply which I have copied in full below - unfortunately I cannot post the brief presentation dated April 14th that she refers to as it is in pdf format. Does anybody know a way of posting a link to it, as it is quite a good read.
I had already responded to your earlier email but I believe you have not got the email.
First of all thank you for your trust and confidence in our Company and potential.
Please find attached a brief presentation of our company which will be helpful.
In the next couple of months you will have some announcements from our end in regard to some business developments as well as our quarter end numbers.
With regard to the price variation, honestly as a Company we have no clue. We are giving the same information in the market in India as well as on RNS. We are focused on our work and delivering the projects on schedule.
On the receivables, I agree it is indeed a matter of attention and all efforts are being made to collect the same. In fact we have a dedicated team only for collections of the receivables. We have confirmations from all the parties of the amounts due and payable by DQE. As per the commitments made by the customers, we expect to recover good amount of money from October 2014 on wards from the receivables.
At the moment we are not looking at equity funding, but are at an advanced stage of negotiations for project funding for the production of our IPs .Trust the same is useful.
Shorting a rising stock....is much worse when it is done by your resident posters that seemingly are your buddies and convince 'long' holders to give up!
What many pi's fail to grasp is the extent that shorting is taking place. Often we tend to think that the 'shorter' is gone, 'he' is out of the way? You'd be wrong in most cases, for ( he ), the shorter, is often joined by others that keep the stock down !
Some stocks fall after GOOD NEWS!
Shorting or normal profit taking?
The main reason for many pi's selling, is they are afraid they'll be left in losses AND because of the fear of shorters !
Quindell has consolidated 15 for 1 and guess what? The shares are tanking! Probably being shorted again and not just by the professionals. Ordinary investors are having a go as well (if you can't beat 'em....?).
At current rate Quindell 'could' fall back to pre-consolidation HIGHS of 45p eventually...confirming Gotham City's price of 3p ? (45/15=3p)
This is what shorting COULD do to your investments!
BUT, where does that leave the genuine investor that has put stocks like QPP into their pension funds?...holding losses again!
* Once pi's know the stock is being shorted...they'll SELL UP IN THEIR DROVES !
We can't both WIN !
The 'shorts' therefore 'win' their bets, whereas the 'longs' lose the best part of their investment, possibly for some time to come......and just when you thought this couldn't go any lower, THEY'LL SHORT THE STOCK AGAIN !
* Thanks for all your support. We are now heading towards 5,000 votes!
(that's A LOT of irate investors!)
Investors are saying something? They are voting in their thousands !
Bookmark the links if you wish to 'pass the LINK/s on'.... or read later?
BE A PART OF IT
# The big problem with shorting is that THEY (the shorters) WOULD most likely lose most of their money IF they just 'bet' on the price going down without trying to 'help' it down?
So, there is the 'catch 22' scenario. No one would know of an RNS to be released that will contain BAD NEWS, if they did and then 'shorted' the stock, then they are guilty of 'insider trading'.
The only sure way to short a stock and WIN is to spread dis-information to defame the company with help from other posters that are in concert with them. To ENSURE that they don't lose the biggest part of their 'short', ironically, then, they must deramp with (seemingly) believable posts.
When the pro's do it, they simply get the media or well known 'crooked' tipsters, analysts or brokers to do it for them. (say no more). .They're all involved together!
# The campaign against shorting is for the benefit of the 'cheated' investors that cannot control their investments due to the dirty tricks played out by co-ordinated shorting in order to tank the sp to abnormally low levels.
When the campaign is complete, the results will be reviewed by Govt legislators re- further action! The branch of the FSA ie FCA will be asked by Davide Serra to conduct an investigation into short selling practices, with the view to either:- an outright ban on short selling, or to be better and more vigorously regulated !
Hedge fund chief, David Serra wants the FCA to investigate 'shorting' practices http://goo.gl/5ZvXAU
Please, how can it be"really cheap" when it's on P.E. of well over 200 ? The earnings are in Indian rupees and there are over 56 million shares. I don't understand the derived eps figures which seem to be in unidentified currency units on some websites. Can you clarify pease?
in my relatively short time dealing in shares what is common when "bad" results are announced is that the sp instantly crashes as it has done today. but after a short while - sometimes weeks, maybe 1 or 2 months - people seem to realize that they worried for nothing and the share price starts to creep back up.
i bought in at 16p last week and im holding, in fact at 12p its really cheap - i say buy.
The debtor position has inevitably put pressure on our cash flow and working capital which of course we are monitoring closely and our banks have been supportive. However, whilst debtors are gradually repaying, it has not come at a rate we expected and so we have been exploring options for a longer term funding solution for the Company to crystalize the large and growing pipeline of orders as quickly as possible. In this regard we are in active discussions with strategic / financial investors to refinance the business.
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