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Real-Time news about Xceldiam (London Stock Exchange): 0 recent articles
|nickcduk: Today the shares will go ex dividend. The share price should fall to about 2-3p imho. You will then in due course recieve the Petra shares on a ratio of 0.3685 Petra shares for each xceldiam share held at the close of business yesterday. There are a number of conditions which need to be satisfied before the Petra shares will be issued. They do seem quite straight forward and they have stated that they expect all conditions to have been met by the end of March. Hopefully that will clarify matters.|
|lizafl: I'm disappointed that we're going to get shares rather than cash - but we should still see some uplift from the current price. Trying to work out what it's worth to us - we'll get 368.65 Petra shares for every 1000 Xceldiam shares - by my calculations that works out at 58.25p per XLD share at Petra's current price of £1.58 per share. As I understand it these shares will be issued as a dividend, so we'll still retain our original XLD shares - though they won't be worth anything.
However Petra is issuing a lot of extra shares (13%), which will presumably lead to a drop in their value. There'll also be downward pressure on the PDL share price when XLD owners start to sell out - but hopefully this will only be a temporary blip. I suppose the question is whether to sell out now, or hang on till after the takeover.|
|din007: Xceldiam Proposed Acquisition
Petra Diamonds Ld
01 March 2007
JOINT NEWS RELEASE
For release: 1 March 2007
Petra Diamonds Limited and Xceldiam Limited
Proposed Acquisition of Frannor Investments and Finance Limited
Petra Diamonds Limited ("Petra") (AIM / ASX: PDL) and Xceldiam Limited
("Xceldiam") (AIM: XLD), the diamond mining and exploration groups, announce
that they have entered into a conditional agreement ("the Agreement") whereby
Petra will acquire the entire issued share capital of Frannor Investments and
Finance Limited ("Frannor BVI") from Xceldiam Limited ("Xceldiam") ("the
Transaction"). Frannor BVI and its subsidiary hold Xceldiam's interests in the
Luangue diamond exploration project ("Luangue"), which borders Petra's Alto
Cuilo project ("Alto Cuilo") in north-eastern Angola.
* The Transaction, which is conditional on the approval of Xceldiam
shareholders at an extraordinary general meeting ("EGM") scheduled to be
held on 19 March 2007, is an all share transaction and Petra will issue
19,674,584 shares ("the Consideration Shares"), representing 13.1% of
Petra's current issued share capital, to Xceldiam in consideration for the
sale of the entire issued share capital of Frannor BVI to Petra. It is
proposed that, subject to the approval of Xceldiam shareholders, the
Consideration Shares will in turn be distributed to shareholders of Xceldiam
(excluding Petra), by way of an interim dividend ("the Interim Dividend").
Xceldiam shareholders will therefore maintain an interest in Luangue, as
well as having an interest in Petra's other operations.
* Based on the number of Consideration Shares, each Xceldiam shareholder
(other than Petra which holds 1,555,555 Xceldiam shares that it subscribed
for when Xceldiam was admitted to AIM in November 2005) is expected,
assuming none of Xceldiam's quoted warrants ("the Warrants") or warrants
held by WH Ireland (that were issued to WH Ireland at the time of Xceldiam's
admission to AIM) ("the WHI Warrants") are exercised before the record date,
to receive (subject to rounding) 368.65 Petra shares for every 1,000
Xceldiam shares held. Petra has waived its right to receive any Petra shares
by way of the Interim Dividend. Certain of Xceldiam's shareholders will be
subject to a twelve month orderly market undertaking in respect of the
shares they will hold in Petra.
* Based on Petra's mid market closing price on 27 February 2007 of 157
pence, the Transaction values Frannor BVI at #31.79 million. Taking into
account the US$1.25 million cash that will remain in Xceldiam when the
Transaction is completed, the Transaction values Xceldiam at #32.43 million,
representing a 20.5% premium to the Xceldiam share price on 27 February 2007
and a 44% premium to the Xceldiam share price on 19 January 2007, being the
trading day prior to Xceldiam's announcement that it was in advanced stage
negotiations which may lead to an offer being made for Xceldiam or one of
* Timothy George (Chairman and CEO, Xceldiam), Robert Kaplan (Finance
Director, Xceldiam) and Richard Rice (Technical Director, Frannor BVI) will
work with Petra to ensure a smooth and effective integration of Frannor BVI
into the Petra group. Timothy George, Robert Kaplan and Tobin Prior, who are
currently directors of Xceldiam, will resign from Xceldiam when the
Transaction is completed.
* It is proposed that Xceldiam's shares continue to trade on AIM and that
Xceldiam pursues new investment opportunities in the mining sector in
accordance with an investing strategy, details of which will be announced
separately by Xceldiam in due course ("the Investing Strategy").
Xceldiam acknowledges that on 21 February 2007 it announced that it had received
an unsolicited second offer for either Xceldiam or its subsidiaries which was
being considered by the Board. However, on 27 February 2007, Xceldiam received a
letter formally withdrawing that second offer and accordingly the offer by Petra
is the only offer available for consideration.
Xceldiam Extraordinary General Meeting
The Transaction requires under the AIM Rules (as a disposal resulting in a
fundamental change in business under AIM Rule 15) the approval of a simple
majority of Xceldiam's shareholders. A notice of EGM (the "EGM Notice"),
including an explanatory letter from the Xceldiam Board, will be dispatched by
Xceldiam to its shareholders and a further announcement confirming that it has
been sent will be made in due course.
The EGM Notice will include three ordinary resolutions ("the Resolutions") as
set out below:
(i) that the Transaction be approved;
(ii) that the Xceldiam Investing Strategy as set out in the
Xceldiam circular be approved; and
(iii) that the Interim Dividend in specie of the 19,674,584 Petra shares be
approved and declared payable to Xceldiam shareholders on record as
at 9 March 2007 in proportion to the number of shares held by such
It is also a requirement, under the AIM Rules, that following a fundamental
disposal which results in a company holding only cash, it must adopt an
investing strategy which outlines, inter alia, the nature of the investments it
intends to make over the next twelve months. The Investing Strategy will be
included within the EGM Notice and explanatory letter from the Xceldiam Board to
be dispatched by Xceldiam to its shareholders in due course.
The directors of Xceldiam have confirmed to the Petra Board that they intend to
unanimously recommend to Xceldiam shareholders that they vote in favour of the
Transaction and have themselves irrevocably undertaken to vote in favour of the
Resolutions in respect of a total of 16,950,000 Xceldiam shares, representing
approximately 30.8 % of Xceldiam's issued share capital. The Company holds
irrevocable undertakings from the holders of a further 11,646,555 Xceldiam
shares to vote in favour of the Resolutions, which together with the Directors'
irrevocable undertakings, represents in total approximately 52% of Xceldiam's
issued share capital.
Adonis Pouroulis, Chairman of Petra, said "We are delighted to announce the
proposed acquisition of Frannor BVI which will significantly enhance our
presence in Angola. We are confident that Luangue has the potential to match the
exceptional exploration developments announced at the neighbouring Alto Cuilo.
We believe that Angola offers substantial potential for the discovery of major
new diamond deposits, a view which we believe is shared by majors who are now
focusing their diamond exploration programmes in this area."
Timothy George, Chairman and CEO of Xceldiam, commented "Our progress and
promising exploration developments on Luangue have been followed by Petra since
we started activities in Angola. It is sensible now that Luangue continues to be
developed alongside Alto Cuilo, improving the potential for the development of a
kimberlite mine in the area."|
|simon54: Here you go:
February 21, 2007
Petra Diamonds Odds-On Favourite To Be Bidder For Xceldiam, But It Has Opposition
Almost exactly a month ago AIM listed Xceldiam announced that it was in advanced stage negotiations which could lead to an offer of around 50 p being made for the company or one of its subsidiaries. Minews did not bother to comment at the time as so many talks come to nothing, and if it was a subsidiary that was acquired it might not have a major impact on the share price anyway. In fact investors must have just about given up hope of a bid appearing to judge by the 2.5p drop in the share price last week to 43p.
In the event an offer now seems to have been received, though chief executive Tim George is revealing nothing about it until his board of directors have had a chance to evaluate its merits and make a recommendation to shareholders. Fair enough, but the odds are overwhelmingly in favour of the acquisitor being Petra Diamonds as this is the company with which Xceldiam became involved in a strategic relationship last summer. This deal made a lot of sense as Xceldiam's Luangue project in north east Angola is contiguous with the Alto Cuilo kimberlite project controlled by the Petra Diamonds/BHP Billiton joint venture. Geology has no respect for man-made borders and the geological similarities between the two projects meant it was sensible to run them as one..
It provided for the sharing of information and co-operation on technical , operational and other matters regarding the two neighbouring concessions. The comparison and profiling of the mineralogy of kimberlitic occurrences at Luangue against those at Alto Cuilo will enable Xceldiam to move twice as fast at half the cost when assessing and developing drill targets. Petra has been working at Alto Cuilo since 2003 and is already carrying out large diameter drilling and bulk sampling and information from this programme, including estimates of diamond content, would be of great assistance to Xceldiam.
The problem that will now confront Tim George is one of price. Xceldiam came to the market in November 2005 when it raised £8.53 million net at 45p per share. At the time Petra took a 2.9 per cent shareholding in the company and, soon thereafter, acquired an option to acquire up to 26 per cent more of Xceldiam's Angolan assets in tranches by December 2008 for £14 million. As James Picton, who is undoubtedly the UK's leading diamond analyst, pointed out, this put a value of £54 million on Xceldiam which was equivalent to 98p per share assuming full option exercise.
The assets to which this deal refers are the 39 per cent interest held in the Luangue kimberlite licence and the 40 per cent interest in the alluvial licence. Xceldiam's partners are Endiama , the Angolan state appointed diamond concessionair and Bapsil Lda, an Angolan mining investment company so it is well entrenched in the country. If and when Petra Diamonds reveals itself as the acquisitor at a price of 50p, it will have to explain why it does not think these assets are worth what it thought they were worth just over a year ago.
But here lies the rub. Reading the press release fast it appears that a bid approach was received by Xceldiam in January and a price has now been confirmed which the board is considering. Read it slowly and it is clear that a second party has entered the fray and no mention is made of a 50p price. Looks as if it is game on and it is strange that investors have not appreciated the new position as the share price is still hovering around the 50p mark.|
|jason8466: Interesting stuff guys. throw yer hats in for a big premium on todays share price. I suspect that those in the know within xld have alerted there friends within the diamond industry to as yet unreleased information concerning deposits of gems. Xld should end up in an auction, but do not be surprised if the management decide to go it alone.|
|din007: RNS Number:8912P
22 January 2007
(the "Company" or "Xceldiam")
The Company notes the recent movement in its share price and accordingly announces it is in advanced stage negotiations which may lead to an offer equating to approximately 50 pence per share being made for the Company or one of its subsidiaries.
The Company will make a further announcement in due course.
For more information please contact:
Tim George, CEO, Xceldiam Limited +27 82 573 4199
David Youngman, WH Ireland +44 161 832 2174|
|sitiain: not any interest here which given PETRA share price rise is very surprising.
interesting times ahead if the bulk samples everybody is going on about at
PDL are good, this little un-noticed stock could outperform them all...........
|latifs100: This share price weakness (opportunity?) suddenly makes Xceldiam an interesting company to look at............ more interesting today down 9p??
any cash left?|
|cimbom: Interesting article
Xceldiam: Methodical diamond exploration in Angola continues apace.
By Ian Mclelland.
Since listing the share price of Xceldiam has been steady going - just like the company's progress in Angola in the hunt for economic alluvial and hard rock diamond sources. Despite the sound progress, the shares have weakened considerably as one of the founders, N Fernandes, was forced to resign as a director and dispose of shares for personal reasons. (We hear for very genuine personal reasons)
This share price weakness (opportunity?) suddenly makes Xceldiam an interesting company to look at.|
|din007: Why the massive slide in Share Price?|
Xceldiam share price data is direct from the London Stock Exchange