Baobab Resources Share Discussion Threads

[6kenny] 04/3/2015 10:23

They are not adverse to pi's holding onto shares in fact they are going to hire a guy to liaise with pi's so that they can feel they are in the loop as obviously no RNS's will be issued.

They have gone above and beyond to offer protection to pi's

An offer document will be released in the coming days outlining what happens if they don't reach 75%

anyone dreaming of a big player waiting in the wings to step in and buy BAO now or in the short term I think are severely deluded.


I'm taking the 6p and never touching the global casino again. It has done nothing but lead to massive debts are the years.

[84yards] 04/3/2015 10:09

Thanks Gowboy, much appreciated.

[qipincha] 04/3/2015 09:43

topical,

the volume in the last few days are significantly higher than the volume redbird increased. I think there are other parties/persons are buying...

[pete_bain] 04/3/2015 09:32

Thank you Gowboy. Everything you have stated is exactly what I perceived the situation to be. Similarly, I think those selling now are a tad premature but understandably they have no further appetite for risk. Like you, I am in no rush and remain undecided. I believe the 6p is guaranteed and shall make a decision post offer.

[gowboy] 04/3/2015 09:09

Pete, my impressions from the conference call aren't that much different to what Kenny has posted.Am I clear on what my direction of travel will be - not quite. My thoughts at the moment are:1) the BOD admitted that they were not aware of the actions of this offer at the time of the AGM and that it came closer to Indaba. I have no reason not to believe this.2) Redbird have committed to keeping the same senior executive team in place to drive the projects forwards.3) the same timelines appear to be in place that were announced at the AGM - largely that the timeline for completion of the study would be around late summer/early autumn.4) the BOD have negotiated some protection for minority shareholders with a seat at the Management table (Jeremy). Jeremy confirmed he would aim to keep minority shareholders informed either via the website or other practicable ways. However, I am unsure how the 10% minimum amount works and whether we would reach that level to put Jeremy into place - my guess would be that the 10% would be reached but I have no evidence to suggest that would be definitive.5) I asked the question what strategic financing plans were being considered around the time of the AGM and had they all been exhausted and that there were no other routes - the response was that the options were always limited due to liquidity and market value. When a company is valued at £20m on the exchanges and you need to borrow 60% of the value of the company then your not in a good position.6) from what I can understand, there are of course risks with delisting and continuing to hold. I haven't read any of Tuckmans posts on iii but in my opinion they are not as black and white as the reputation that precedes them.7) however there are of course risks in delisting should there still not be appropriate interest in the project/s and delays go beyond the next 10 months and further funding is required.8) at the moment the delisting will immediately kick start the pre-emptive rights issues which means every shareholder will have the opportunity to take part. You will therefore face dilution from the rights issue full stop - however set against that you have the upside at some potential date in the future to recoup that and more should the project gather sufficient interest. Note however that should you not be able to take part in the rights issue then you are likely to face an even larger dilution. That is the nature of the rights issue - you have to act.9) as I understand it, Redbird, under the take over code have to offer 6p to shareholders once the formal offer is made - it cannot be reduced or amended. Therefore I am still waiting a while longer before making a decision. However, it puzzles me why so many shares are being handed to Redbird at a 9%+ discount to what they are going to have to pay within the next few months.10) the timelines as I understand it are that Redbird have to make the offer within 28 days, that offer is then in place for a further 21 days where you will need to decide.11) you therefore have three options in my view:a) accept the offer, accept any loses or gains and sell your entire holdingb) do not accept the offer and continue to hold your shares in the delisted companyc) accept the offer, but for only part of your shareholding and then continue to invest shares in the delisted company with the potential for upside sometime in the future.It is a massively difficult call to make and I am far from being an expert in this arena so even some of what I have said may not be factually correct.I therefore offer up no opinion - it is effectively down to your risk appetite and personal circumstances. As I have always said, you pays your money, you takes your chances.Good luck all in what you decide, its been a tough lesson for many of us Im afraid, but you live and learn........Best wishes all. If anything is wrong in the above feel free to correct - shareholders at this current time need as much information and clarity as they can get.Cheers

[topicel] 04/3/2015 08:42

Qipincha - but however many Redbird pick up they have probably no opposition unless someone came in and made a completely outrageous bid to all PIs remaining. All that does is create an impasse that would run the company into the ground and PIs lose out.

It would indeed be great if Redbird and our BoD had actually offered something more realistic for the future value and yet they haven't cos £12m is needed. So dilution if we stay listed as Redbird aren't gonna allow us to do that we have no choice for we were daft enough to accept an unconditional bridging loan which at the time I said would be called in when it suited them...

Our BoD have backed it irrevocably. Without major buying into 20pc range buy someone and like UEN a real group of chancers like Fire East were, how can anyone expect more than 6p, or substantially less unless it is Redbird who offer it? And why would they with BoD backing and no doubt plenty of other large shareholders who have been 'promised' something down the line...

Topicel

[pete_bain] 04/3/2015 08:09

If no one sold at all the price would be forced up - Redbird want this asset. Shame so many have capitulated.

[kbrook] 04/3/2015 08:04

Selling slowed down, expect the prize to rise to tempt more sellers.

[pete_bain] 04/3/2015 07:58

Darran participated in the conference call. Kenny has posted his conference call impressions. Could you post yours?

[gowboy] 04/3/2015 07:43

Pete - not the last time I looked.

[pete_bain] 04/3/2015 07:38

Gowboy are you Darran?

[pete_bain] 04/3/2015 07:35

Kenny. Genuine question. What would be the motivation for them to encourage you to keep shares in the unlisted company ?If enough holders were to do that they would not reach the required 75% of buys albeit Redbird would not have to pay 6p for the 25% they don't need. It is a fine line they tread.

[qipincha] 03/3/2015 22:26

topicel,
as a business, it is risky also for redbird to let bao burst, that's why they make the offer.

if the price keep dropping, there is also risk that bao may receive offer from other companies as it appears more attractive.

"Not a done deal", that's why redbird is also working hard now to buy everything on the market


now they are 40.91%

[beth21] 03/3/2015 19:22

6Kenny,

I do not envy you however make a decision that will suit you best and feel most comfortable.

Are you off AIM stocks for good? You are not 'tempted' by Kefi (are you?) despite the 'close' relation of holders and I would not suggest AMUR as it is in Russia (very bad PR at the moment).

[topicel] 03/3/2015 16:11

Clockers, it's a done deal because BJ and JD have pledged their shares and irrevocably so to Redbird to take us private.

If it fails then it goes bust or is worth 0.4p, that is why folks are selling. the risk you take is the 9pc premium...

Topicel

[topicel] 03/3/2015 16:08

the point kb, as futile as it is, is to see if he would answer genuinely and make a serious case for his crass and rude observations about so-called dime bars causing this malaise.

he commented that to be the case to you. he says I am filtered. So ask him to respond to the post by reproducing it for him and it would be just a small panacea maybe...my 4p was inspired, my 40p wasn't, so what?

topicel

[clockers] 03/3/2015 14:36

Is anybody interested in fighting the proposal? They still need 75% and if Redbird didn't make it to this voting amount I would imagine it would be seriously costly and risky to put Baobab into administration and hope they could buy the assets when other parties would be interested.

If 75% of the vote wasn't reached they would have to offer us a better price or risk losing all themselves. If the plan is to flog to the Chinese surely they would be a competing bidder with the receiver.

[kbrook] 03/3/2015 14:23

Topicel.. Not sure why you want me to repost your post, what's the point of that. I am sure he can read your post himself.
Yes he has repeatedly been shown to wrong but he didn't influence my decision to buy one share so why would I want to have a go at him.
We are all losers here, except those that keep reminding us of their inspired purchases at 4p.

[flyfisher] 03/3/2015 14:04

With their recent purchases and the director commitments, redbird now account for a 47.4% holding, and are seemingly soaking up any sellers.
The stock has been available to buy at 5.5 with a 6p return pending.

Is no one attracted to a 9% return in 6 weeks.

[clockers] 03/3/2015 13:58

I have approximately 200k shares

One alternative is to sell the lot. Does anyone have any thoughts about an alternative course of action here. I would be interested to discuss any serious thoughts. Also can we in any way hold the BOD responsible for misleading investors with any comments at the AGM?

[topicel] 03/3/2015 13:50

Kb, as I asked yesterday, reproduce my post for Max where I asked how 'dime bars' were responsible for the £12m oversight, or delayed DFS, changes in focus from pig iron etc. etc.

Copy my post and ask Max to be man enough to answer. But he has no agenda but to screw you, me and everyone else here. £31k at 39.5p he bought...yeh, right!

Now ignoring, like Tuckman, the realities and the fact our own BoD are backing Redbird's proposal, not because of dime bars, of that I'm also sure.

I hate to be shafted like you, but at least you could have a go at Max for once and get the angst out!

Topicel

[6kenny] 03/3/2015 13:45

beth,

Whatever decision I make would be wrong but I needed to make a decision.

I didn't feel very comfortable on the CONference call and when they raise $12million to see them for 12 months, what if they get delays and need more funding, dilution, dilution, dilution.

Now that I have decided to sell it will more than likely be sold on in 6-9 months for several hundred million dollars!

Redbird were sick of AIM not valuing the potential of the project and it made it untenable to negotiate about a world class asset when your mkt cap is/was £12-£14million!!

As a limited/private company they can now talk about ENTERPRISE value and not be egg faced when AIM values you at peanuts.


Or so the sales patter went....

[beth21] 03/3/2015 12:11

"I'm just glad we are looking to get 6pps"

I agree...it could have been worse eg Angm, as long as Redbird has not agreed with another entity to hand over Bao's assets within 6 months post dfs for between £60m+.