We were never promised 12.5p/share. That was based on the value of NWF shares on the day of the offer. Post-rights issue this dropped to a theoretical 9.7p and subsequent pressure on the sp has brought us here. When STEL shares failed to hit 9p after confirmation of the Newfield bid it was clear that an all-paper offer in a small, illiquid overseas company wasn't so attractive to the market in general, and when the rights issue wasn't particularly well supported it made me temper my expectations for larger gains.
Hopefully you're still ahead of the game, if not so far ahead as you'd expected.
Looks like the proceeds from my share entitlement of 170 will be nowhere near the £1.237 I invested. So I have already come to terms with the fact that this is going to be a write off. Can't see the point in wasting mental energy on this lost cause.
Wishing all other investors on this board the very best of luck. I think we're all going to need it.
We were promised 12.5p a share to merge with NWF... but this will be nearer 7.5p now that the NWF share price has dropped to A$0.18p and that's before most of the STEL share holders even get their NWF shares to sell... NOT GOOD
Many thanks for your response frog. I really appreciate the response I have got so far from this board. Things are getting a bit clearer now.
I hope this message board will keep going for some time and not shut down as it is nice to be in touch with others who are in the same boat as I am.
Your original stellar shares will be replaced by newfield resources at a rate of 0.762 new NWF:ASX shares per STeL share previously held. If the NWF price of 17-18c holds its a nice premium to stellar price when it was taken over. Right now I don't think you can do anything by wait.
Following on from my previous post, please consider me totally ignorant about takeovers by foreign parties, how it affects shareholders living abroad, how they should deal with it, etc.
I would also like to be enlightened on who holds the key to accessing my original shares. If there's an appointed broker, would they be dealing with the original shares plus the entitlement ones, or would it be just the entitlement shares? If so, how could I access the original shares which have disappeared from my selftrade portfolio? Please pardon my ignorance.
Thanks to you for such a prompt response. Please pardon me if this sounds stupid, but did you mean my present broker Selftrade or would there be a UK broker dealing with this matter and if so, will they get in touch with us the shareholders without us chasing after them? Selftrade have already informed me that they don't deal with ASX. Would your advice be to sit still until we receive some form of communication from whoever is dealing with this?
I would like to sell the small number of Stel shares I hold if there is any value to them. I have just received a share entitlement of 170 which is indicated on my online account with Selftrade. However the original 224 shares have disappeared from view. I am clueless about takeovers by foreign companies and how it affects shareholders and don't know how to proceed with this matter. Any advice from experts on this board would be most appreciated. with grateful thanks.
Not sure about them being 'readily saleable', particularly at 10p+. Talk elsewhere was of NWF shares being suspended during the rights issue, so I tried to get a quote from IG, where I've just opened an account. Buy at 24.5¢, sell at 11.5¢ is what it said. It seems the ASX offers a matched bargain system where you leave your sale instructions and wait for a buyer, so poor liquidity could be a real problem for those expecting a quick profit.
ye exactly that.some brokers wont let you hold them so you are forced into a sell
me, i bought some more today before being frozen out late AM by HL
so ive got about 6K worth
again ill sit on these a while to make it worth the $200 au for the transaction of selling them lol
either the market has missed a trick, PIs dont want the hassle of holding Oz stock or I have misunderstood the whole thing. Either way I am prepared to hang on just to see what happens. Only have about 10K worth anyway.
Yes, I've seen the positive RNS too now... but since the NWF shares are currently worth A$ 0.24 and STEL will get 0.7622 NWF shares per STEL share, that means each STEL share should now be worth:
1 x 0.7622 x A$0.24 divided by A$ 1.83 = 10p so why are STEL shares still stuck at the 5.4p with no upward movement at all with the news; especially since this also means the mining project will now definitely go ahead for the benefit of the merged company (NWF by name).
The share price should at least be 9p now, else an easy 90% gain for any buyers ahead of 27th April.
Voting is a formality surely? It's 75% of votes cast, not 75% of total shares in issue. Who would be mad enough to vote against? From the RNS is 12/3/18:
The Scheme will be put to Stellar Shareholders at the Court Meeting and at the General Meeting. In order to become Effective, the Scheme must be approved by a majority in number of the Stellar Shareholders voting at the Court Meeting, either in person or by proxy, representing at least 75 per cent. in value of the Stellar Shares voted. In addition, a special resolution implementing certain matters in connection with the Scheme must be passed by Stellar Shareholders representing at least 75 per cent. of votes cast at the General Meeting.
The biggest reason why we aren't near 10p yet is that the merger still needs >75% of STEL shares voted in favour, which won't be confirmed until after the morning of 19th April (noting >55% have been committed in writing at present), the court hearing to sanction the scheme being more of a formality on 25th April; with 26th April being the last trading day for STEL shares.
Personally, I feel this is a good deal for both STEL and NWF shareholders, both then able to share in the value of diamonds which might otherwise be left in the ground.
Us PIs won't be able to sell our NWF shares until 4th May at least and we just don't know where the sp will have settled by then. With the underwriters trying to re-home 89m shares and then another 95m being created to pay for our STEL holdings the sp seems likely to come under pressure in the short term which I guess is why we're not at 10p yet, which is the value of STEL shares while NWF is at 24¢.
Bear in mind that the NWF shares delivered through the Rights Issue, with more than half to the under-writers, will not be released until AFTER the final voting and approval of the NWF merger with STEL through the courts on 25th April... 26th April being the last day of STEL trading if everything goes through as expected now.
Interactive Traders will allow their nominee accounts to hold NWF shares, but Barclays still say they won't...
At 6p, with likely value above 12p post 25th April, STEL shares remain a STRONG BUY.
Karl Smithson is managing the merger process well in my opinion, having spoken with him briefly this morning.
I would encourage PIs to vote in favour a.s.a.p. as the future looks bright with NWF and very bad without this merger.
The biggest potential problem may be if the underwriter gets stuck with a pile of unwanted shares at 15¢ and just dumps them on the market, but this worst-case scenario is already in the price. Once we see how well the offer was taken up we'll have a better idea of where we're headed.
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