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Baobab Resources (BAO) Takeover Rumours

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Baobab Resources Takeover Forum Posts

07-08-2014
Well the 'change in the short term' is a year-end cash-call. There are several possibilities as to how that might be resolved, from a financially supportive JV to a desperate rights-issue. Something will have to happen and you can exclude any near-term sales of pig-iron. Personally, I doubt Redbird will be allowed to increase their stake any further (without a takeover)...
05-08-2014
Why is it a 'de-ramp' to explore a scenario? Personally, I doubt 'going private' is all that likely a scenario these days. In BAO's case, Redbird hold such a big slice, it would be simpler to takeover the company first. The 12 month rule would require them to bid ~20p/share, but I doubt they would really want the whole company. It would have to be pretty desperate (financially) for BAO, for such a bid to be made (and succeed). On the other hand, such a scenario is not impossible, if post DFS the project remains stalled. However you look at this going forward, the 'future' always comes down to who/when is the (deep-pockets) JV partner for this pig-iron project?...
This is what is stated... Any increase in Redbird's aggregate shareholding up to 50 per cent. of the voting rights arising other than from the issue of the Conditional Placing Shares or the exercise of the Conditional Placing Options or Third Tranche Options will be subject to the provisions of Rule 9 of the Takeover Code.
By AMED, you are presumably refering to Redbird's holding? If shares were bought in the open market (increasing their holding), it would necessarily trigger a takeover bid. Redbird are already listed as owning well over 30% of the company (by virtue of a voted takeover-code waiver at the last placing)...


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