Have just received the cash into my sharedealing account, hopefully you all have as well.
Best of luck all with your future investments and hopefully see some of you on the other message boards. Think this might be the last time I buy into a company that has a shareholder with >50% shareholding...
I wonder why we haven't had these yet? The shares were cancelled on Thursday, so I was expecting to receive my cash on Friday. Just checked my share dealing account and I still haven't received anything.
From memory, my only previous experience of having shares that were acquired saw the proceeds go through very quickly after cancellation. Is everyone in the same boat?
As a very long term holder who is being taken out at a more than 50% discount to purchase price only one word from me:
I feel like I've been mugged this is a disgraceful price and an insult and all that everyone complains about on AIM
I suspect lower price is the route they are angling for. The offer price was already very low, so really they are a bunch of charlatans if that is the case. I very much hope the big fish vote don't bite, but I suspect they will just to get their money out.
In other news, John Sisay was meant to step down as CEO today (here is the link if you haven't seen this before - it was news to me when I saw it yesterday!!)
Based on what I have seen over the years they are aggressive (opportunistic) and will be looking for a lower price.... or I think they have got cold feet and this is just an excuse. The very very late timing indicates it is probably the former. We shall see in the next few days/weeks.
Astonishing - hardly a friendly act! They maybe trying to reduce the price but I would be very surprised if Pala accepted a lower price. My view all along was the price was too low so perhaps the best option is to run the Company for the next year or so and obtain a much higher price.
This is ridiculous! How is this happening at this stage of the transaction, what are Iluka playing at?! They've had literally months to review every aspect of the company. Are they now trying to get a discount?
Getting pretty bored waiting for something to happen now.
I am in the process of buying a house and would like to use the proceeds from these shares (at 36p) towards that. I only have 3-4 weeks before I need the money, so at this rate I'm going to have to lose out on thousands of pounds by selling out at 31/32p instead.
It is pretty gutting, but can't see any solution really. I am reluctant to buy non-GBP shares on the whole. I did vaguely look into Iluka, but then you have to start thinking about FX movements or trying to hedge your FX exposure. Let me know if you get anywhere though. In my brief forays, I couldn't even find a broker that would allows me to buy shares on the ASX.
I would have expected this to reach at least 50p by the time of the full year results, so we are missing out on at least 39% gain (36p to 50p) in the short term. The post-Brexit slump in the pound would have also helped us out considerably.
Today's figures support my view that the take out price was far too low. I suspect this done deal will go through and would be surprised if it was blocked by the German authorities. I intend to research the acquirer and see if they are worth buying.
Interesting times. I'd sold half my holding at 34.5p to put it elsewhere.
I doubt very much that the merger won't go through, but it does mean that the brakes have been put on the whole process for a few weeks. They only have until 30 September to release their half year results, so they must be DESPERATE to avoid having to publish those if they weren't going to do it before de-listing.
Q3 results I doubt we will ever see. They have no obligation to report production figures outside of the half yearly reports, so expect those to disappear without a trace.
I have made some decent money off SRX, but this whole experience has left me very reluctant to invest in a similar AIM company again. So many AIM resource stocks perform terribly (I have lost quite a bit of money on them in the past), so to find one that could be brilliant, only to be denied the opportunity to continue to share in its future growth, is flipping infuriating.
Now this is getting interesting. I suspect the institutions are still invested. The share price seems to have been held back since the offer to ensure it keeps below 36p.I kept my holding in the ISA but sold the others I held.
I agree that if this sale falls though 20p is possible but in the longer term this share has a value well in excess of this current offer IMO.
Having sold my 300,000 shares in the market to buy into DJI and FAM (save for those in my SIPP, I had my finger over the buy button to buy back 50K today at 29.2 pence. Then I thought will happen if the bid is blocked or the parties agree over the next 5 days to cancel the merger; the possibility is that in that event the price will fall back to 20 pence or so.
There is little doubt that the interims which were last year released on 26 August have been held back. The unaudited H1 results should show a good improvement; note I use the word should.
Then there will be the Q3 results due early October.
The SPAngel comments on Proactive are a must read. In short the Germans do not like or want a level playing field as far as both consumers and producers are concerned. Why? It does not suit them. The EU competition policies. PAH. Just one of the reasons I voted Brexit.
I said many times that SRL could become a good cash cow. Might not suit Pala but then tough.
"As long as that compensation is deemed to be fair value for the stock, the recourse for the objecting minority shareholders is limited."
Do we believe 36p is fair value? No!
Even in the absence of another offer to push up the price, the company should have carried out an independent valuation and rejected anything below the range of valuations provided. Anything else is eroding wider shareholder value in the name of Pala's interests.
So the recourse for shareholders is presumably to obtain an independent valuation and launch legal action against the company/board for allowing the deal to go through. The board is:
Robert Edwards - independent
John Sisay - independent
Stephen Gill - Pala
Phillip Day - Pala
Charles Entrekin - independent
Alex Kamara - independent
Richard Lister - independent
Not sure how board decisions are made, but presumably it is a simple vote. So the 5 independent board members should have voted down the offer and it should never have been put to shareholders in the first place. The board are voted in by all shareholders to represent their interests, so they wouldn't automatically put the deal to shareholders unless they were first happy that it satisfied those interests. Instead, they voted unanimously in favour!
Pala as shareholders are not the same as Pala as members of the board, but I think the two have been muddied here.
Presumably if the deal had been rejected at board level, Pala would have had to try and press for a special resolution to call an extraordinary meeting or something similar. Not sure what the % vote requirement is for that, but I would have thought it would be at least 75%, i.e. greater than the irrevocable undertakings received. So no deal could have been passed.
The independent directors have proved spineless against what is a ridiculously exploitative offer. No wonder UBS gave Iluka a massive "well done lads" for bagging a huge earnings contributor at a knock down price:
While this is a done deal with more than 50% acceptances I wonder if the institutional holders will sell. When Pala purchased at 30p most of them stayed put. I am very disappointed at the buy out price expecting at least 60p. I would like others thoughts on whether it is worth staying put rather than selling. I appreciate that would not be a good idea if there were 90% plus acceptances but feel this share should be valued at least 50% more than the current offer. My only consolation is that I have a small overall profit having averaged down at 18p. I also sold out to Pala at 30p having purchased at around 4p and then kicked myself when they went to 60p plus. Hence my current thoughts and questions.
The price is ridiculous in my opinion. It doesn't reflect the current operations, let alone any kind of premium to take into account future pipeline, expansion, etc, etc.
So why has it happened? I can only assume that Pala could not find any other way to offload its large holding in the foreseeable future. For me, the key phrase in the RNS is:
"The SRL Board believes that the Acquisition presents an opportunity for all SRL Shareholders to crystallise value for their shareholdings which may not be achieved in the near term if SRL were to remain independent and quoted on AIM."
Any reference to "SRL shareholders" should be taken to mean "Pala" throughout the document, given that they are controlling party and only act in their own interest. So essentially Pala could see no way of selling their shares through AIM, have presumably exhausted several other avenues and so in the end decided to take what looks like a fire sale price in order to realise some quick cash. Presumably their view is that the time/effort factor in managing the company no longer justifies the rewards.
I guess there is nothing we can do - that is the risk you take when one party holds a majority of shares in a listed company. That said, I do believe the directors of this company have acted, at best, unethically. They should act to create value on behalf of all shareholders, but it's pretty clear that this whole decision has been taken in the interests on behalf of Pala. A truly independent director would have pushed for a far higher price.
What particularly irks me is that Pala are making all other shareholders sell out as well. The deal should have been structured as an open offer, much like Pala's own 30p offer back in the day. That way, each shareholder can decide whether the investment still fits in with their own investment horizon, etc, etc.
I can't complain TOO much, as hold at an average of 19.8p. However, this was an investment I felt particularly optimistically about and now I will be denied the opportunity to share in its future growth. I guess the only thing for it would be to hold our noses and buy shares in Iluka?
Personally I would rather the company was not subject to an offer at all, but if it was then I would be looking for 100-120p minimum. This was always something to hold for a number of years and I would rather make more money in the long term than a smaller amount in the short term.
and you may or may not know but Gibraltar1 (which he has openly stated on LSE has in about 5 million shares. I do not know about Corbine but another holder recently stated that he holds 600,000.
I hold 350,000 which is far less than them. I am holding my ground. I cannot see this going for 36 pence and the sooner the board puts paid to this opportunism so much the better. Iluka failed with Kenmare. Let them fail with Sierra Rutile.
So lets keep our heads. They have the resources available to them. $1bn Aussie borrowing facility. So could bid up to 3 times the current price! They returned $715M to shareholders. Lets see what transpires but i reckon 60p plus final price then its Pala's call, not ours!
I kind of doubt the advanced talks argument. Sissay is doing karaoke in Japan currently with his mates from Toho Titanium. When I sell a company it is locked doors for days. This has a long way to run, we know as do Pala the value of the stock. The reality is that Pala directors were paying .54p for shares 18 months ago or far poorer prospects. Pala will only deal at true value so lets see what happens. Now if you said a price between 70p and £1 I would agree that somewhere between seems like fair value. DON"T forget we have a strong institutional share holder base who will decide the final price, on this occasion it is fortunate that we don't have z large number of PI's who could effectively jump at a stupid price. I reckon we let them get on with it because the II's/Pala won't sell us short.
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