Velocys Share Discussion Threads

[gac141] 20/8/2016 17:37

Indeed it might...

[gac141] 20/8/2016 17:37

Indeed it might...

[fern5] 20/8/2016 13:05

It might be someone other than RA who is accumulating?

[woolybanana] 20/8/2016 10:36

Not heavyweight pre-bid perhaps, but certainly placing himself to mount a bid if and when, probably when the next phase of development is completed and it is derisked a bit more.

[supernumerary] 19/8/2016 20:35

There's always room for negotiation. Not sure what you're offering...

Anyway, in the real world, I'd say the price is still meandering around in the doldrums - look at the graph above - recent rises are barely more than noise. Certainly doesn't smack of heavyweight pre-bid accumulation.

[auphilman] 19/8/2016 19:52

Indeed super. It is a long document, shame the web page is worded badly.

So any room for negotiation ?

[supernumerary] 19/8/2016 19:19

It obviously has to be that way or else someone would only have to buy one share every year at an inflated price to set the price of anybody else's later offer.

The best link for the code is here:



Be aware it's 400 pages long. The section relevant to this discussion is on p152.

[musarddjm] 19/8/2016 18:22

GacYour link is a summary of EU legislation, available here:http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2004:142:0012:0023:EN:PDFIf you read article 5, section 4, you'll see that the highest price is that paid by the offeror.

[indiestu] 19/8/2016 18:00

Shafted. Buy all you can on Monday but it'll probably be too late.

[supernumerary] 19/8/2016 17:31

Give me the reference. This is what the Takeover Code says:

9.5 CONSIDERATION TO BE OFFERED
(a) An offer made under Rule 9 must, in respect of each class of share
capital involved, be in cash or be accompanied by a cash alternative at
not less than the highest price paid by the offeror or any person acting
in concert with it for any interest in shares of that class during the 12
months prior to the announcement of that offer. The Panel should be
consulted where there is more than one class of share capital involved.

[gac141] 19/8/2016 17:24

Aim Rules are different.

[supernumerary] 19/8/2016 17:19

You're misreading it. It's definitely the price paid by the offeror.

See here, p38:

[gac141] 19/8/2016 17:12

Sorry I beg to differ.

Taken from the "Take over Panel" website. Take over Code.

When a person or group acquires interests in shares carrying 30% or more of the voting rights of a company, they must make a cash offer to all other shareholders at the highest price paid in the 12 months before the offer was announced (30% of the voting rights of a company is treated by the Code as the level at which effective control is obtained).

[supernumerary] 19/8/2016 17:05

gac - I'm not sure you're right here.

1. The price offered as a result of a mandatory offer (ie one coming about because the offeror gains control of more than 30% of the outstanding shares) must be no less than the highest price the offeror has paid over the last 12 months. That's not necessarily the same as the highest price anyone has paid over that period.

2. The price of 225 is irrelevant. These days instis all mark to market, so the original purchase price has no impact on their attitude to a takeover offer, it's purely based on their view looking forward from the day of the offer.

As to whether there's really an offer coming I have no idea, but doubt it. It seems more likely to me that the gains here just reflect a modest firming in the POO.

[gac141] 19/8/2016 16:53

Just read the rules. At September 2016...Share price was 80p plus and I don't see the other institutions going for it.. I see an exciting time ahead.

[indiestu] 19/8/2016 16:36

No problem Gac. Can't you see how this has been worked this afternoon. It's interesting. I'm buying as much as possible here. If we get an offer and it'll probably be at 45p then that's 50% above EI's trades over the last three months. I may recoup my investment.

[gac141] 19/8/2016 15:20

Sorry Indiestu- Please don't talk rubbish. Read my post and try not to mislead yourself or anyone else...

[indiestu] 19/8/2016 14:39

Delayed trade. There's the 30% +. Now we get shafted.

[babbler] 19/8/2016 14:24

Sell though isn't it?

[musarddjm] 19/8/2016 14:17

Another 4 million....

[musarddjm] 19/8/2016 12:49

FID for Red Rock? Or RA takeover bid?Those are my two guesses...

[beeezzz] 19/8/2016 12:44

20DMA close to crossing 50DMA....looks like news is leaking out as perusal on AIM...

[gac141] 19/8/2016 12:00

Just ...again to make it clear..I have posted this before. AIM RULES... An individual that acquires 30% stake in a company is obliged to make an offer for the companies remaining shares. The price offered must NOT be LOWER than the HIGHEST price in the PREVIOUS 12 months.

Also take note that most of the remaining shares are owned by institutions some of whom paid 225p and even then they do not have to accept the offer.

There is plenty to come from Velocys in the next few months..the touch paper has been lit...

[indiestu] 19/8/2016 11:18

Let's hope he pays more than 30p for the final million or there is going to be a lot of shafted shareholders.