Yes, its III. I've just spoken with them, they state my account can hold/trade NYSE/TSX no issues at all. However they state they have not received any notification/instruction by LSE:MARL regarding the matter.
I'll await a corporate action notification.........
my understanding is that iii (or whoever holds your stock) does not buy shares in Sand, your existing shares are converted into Sand shares and a cash payment by Sand/ Mariana. The issues you will need to consider are - does your trading account allow you to hold NYSE listed stock - if not you may have an issue holding/ trading sand. Also iii should probably have notified you of election options as to what you want to happen re your holding - I suggest you check notifications in your account.
ps looks like takeover was ratified on the 26th June!
on track to delist 4 July so best investigate asap!
Price hit 99p so took a small top slice, but subject to tax implications and stock exchange compatibility issues I plan to hold the rest for a while.
which leaves me with my question:
Are there any tax liabilities for the cash payment - do I get all 28.75p per share or is there a "special dividend"/ CGT implication. Do I nominally "sell" circa 25% of my existing holding in exchange for cash (and apply normal tax rules on sales?)
Alternatively do I just "ignore" the cash payment and treat the purchase price for my MARL shares as the purchase price for the new sandstorm gold shares?
eg lets assume I paid £10,000 for 10,000 marl shares.
On this basis im due circa £2,875 cash (hopefully no tax), and
2,573 sandstorm gold shares -
for the cgt perspective do I now treat the 2,573 shares as costing me £10,000 or £7,125 (10k - £2,875),
Based on Sandstorm's share price today I calculate that the "value" of the bid by Sandstorm is approx £1-00. So not a bad deal for Marl shareholders, particularly those who do not want to own $US stocks.
However for the more adventurous, becoming Sandstorm share holders seems to have good prospects. The word is that some existing Sandstorm shareholders are not happy with the plan to buy MARL (dodgy Hot Maden location being an issue and overvalued bid another) and that is why the Sandstorm share price has fallen since the offer has been made.
IMHO Hot Maden will become a very profitable option as a mine, and Marl's shares were significantly undervalued prior to the bid (dodgy location and only a minority shareholding with Turkish Company Lydia owning 70%.) So maybe Sandstorm have not overbid. As an existing NSR holder in Hot Maden they should have known what they were getting themselves into!
Sandstorm's plan appears to be to convert their ownership in Hot Maden into an income stream in exchange for advancing an up front cash payment to Lydia to build the mine. This reduces some of the risk of their owning a mine in Turkey. it's quite feasible to do the deal (presumable already discussed by the 2 parties) as getting an up front payment to fund the capex for the new mine in exchange for gaining 100% and full control of the business maybe what Lydia want (no need for expensive feasibility studies to raise expensive debt because the location is considered dodgy.)
Now I see why the SP is currently running at 95p & not closer to £1.09. The scheme document that values the transaction at £1.09 per share is based on Sandstorm shares being US$4.04 when they are currently trading at US$3.55 (CAD4.77). http://www.sandstormgold.com
Well, ii are certainly giving me a price for Sandstorm Gold Ltd (SSL) as an international equity, currently £2.6771 at an indicative rate of 0.5746 & showing as 4.58CAD per share. Obviously I've not pushed the button to buy so can't be 100% & who knows whether it will be the same after the merger. I've heard nothing from ii regarding voting for my MARL holding & don't expect to get a definitive answer if I ask about future trading. I'm going to take the chance, hold my shares & expect to be able to trade SSL on the iii platform as an international equity going forward. Not selling at 92p when the scheme values them at £1.09. If the SP rises to above £1.10 in the next couple of weeks I may reconsider.
Message below from iii with regards to trading sandstorm shares through them, we would need to know if Sandstorm do their settlements on CREST and if not would they to help UK shareholders.
While we do have access to the Canadian and American markets this would be dependant if the holdings settle on CREST the electronic settlement system.
Not all international companies are required to register to CREST so until such times as the company moved exchange, we would not be able to definitively answer if you will still be able to trade these units through Interactive Investor.
hi - in light of what has occurred , and my only one experience of a takeover , do we now wait for information & voting form (as is what happened on my previous experience) or is it not the same type of takeover ?
i seem to notice a few of you talking about selling , which lends me to believe this is a slightly different situation...
as always , any information to the novice greatly appreciated.
take a look at hot madens next door salinbas owned by ariana ,a producing gold and silver miner due a resource upgrade any time now .at the moment over all the prospect in turkey exceed marls 30%of hot maden and they are about to increase significantly .in my option very under valued
Should be a wake up call for any AIM mining punter that DFS BFS studies etc mean jack sh!y in the real world when thye employ an Npv of c 8-10% - I have been saying this on so many boards for a long time now - todays deal implies an NPV26.5
Plus carrying costs .................... AIM directors at their very best ................. Good Job they managed to top their warrants up first ................. Couldn't make this up ........... Buy ,Hold or Fold over to you ............ Best Wishes All.x
Probably because it's a share plus cash offer. Most invested here are invested purely for Mariana and now they find they are going to be investors in a completely different entity whom they don't know anything about.
That said, Sandstorm seem like a pretty solid company so seems like a good deal to me. I think the price will rise closer to the 109p levels once those who are happy with their profits at these levels have sold up.
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