Eredene Capital Share Discussion Threads

[jimbob17] 22/6/2015 18:00

Hi Epistrophy,

Yes I hold shares in my SIPP. At the moment I am minded to hold off accepting in order to see the acceptance level at the first closing date.

[epistrophy] 21/6/2015 19:25

Yes it does feel like a stitch-up. There's clearly value in the shares, but the heavyweight financiers behind the bid are the only ones who will benefit.

Following the purchase of 57,055,568 Ordinary Shares the Concert Parties now own over 50 per cent. of the issued share capital of Eredene. There can therefore be no certainty that the current strategy of seeking to realise the remaining investments in a reasonable time frame will continue. There can be no certainty that Eredene will ever pay a dividend or return capital to Shareholders. Shareholders no longer have certain protections which were available to them before the admission to trading of shares on AIM was cancelled.

I wonder if there are any major shareholders left who might kick up a fuss. I know Miton/Nick Greenwood owned 4%.

jimbob, do you hold shares, and if so will you be accepting the offer?

[jimbob17] 19/6/2015 15:38

I think this is a poor show. Yes it is a mandatory offer but the rhetoric in the announcement is clearly aimed at scaring shareholders to sell at half the NAV.
The directors say the price is not fair but that shareholders should accept it anyway !

[epistrophy] 19/6/2015 11:36

Takeover offer from the manager at 5.5p



Not quite the result I was hoping for, but with last year's tender, at least anyone who bought recently should be in profit.

[epistrophy] 10/12/2014 21:39

Yes, today was the final trading day before delisting.

Interesting that the manager's employees have been picking up shares this week!

[chemistdude] 06/12/2014 13:35

Looks like this is delisting.

[deepvalueinvestor] 24/3/2014 22:12

Anyone monitoring this? Massive discount to nav and costs being cut with Ocean Dial taking over management at the end of March. However, I would much rather see a merger with skil ports & logistics who are keen to diversify.

[varies] 24/11/2013 12:26

Mach100
On PAL I can only refer you to the thread on this site.
In short PAL lined up financing from a big Indian company which changed its mind.
Then there were difficulties with the local inhabitants at which point I threw in the towel.
Now the Malayans KLK are coming in, so it seems,and prospects look much better.

[mach100] 23/11/2013 23:18

No probs. I am a terrible tipster and have some bad investing mistakes. What happened with PAL? ubc results are out Monday and if the Audioboo story is good I expect it to jump. Dkl has an excellent thread here by a great bloke called mamus, really informative but cos of the spread it is hard to get out of easily. Still as I say for me it is making all the right noises and anyone who gets in now will be ahead of the herd. You can see how quiet the Dkl thread is. There have been a few trades at .98 recently which is just above mid price but I can't figure out whether it is due to tick up or down.
Do let me know what happened with Pal. Yes, resources, harvesting and exploration can cost you a fortune!

[varies] 23/11/2013 19:48

Mach100
Thank you for mentioning DKL; you may well prove very right.
I am still feeling sore from an ill-timed purchase and even worse-timed sale of PAL, another West African palm oil company, but will have another look at DKL all the same.

[mach100] 23/11/2013 18:52

Thanks Varies, I am put off anyway with the weakness of the rupee and admin expenses as I said. The spread is about 8% I think but might be possible to buy within that. I like DKL the crude palm oil company which is due to start production in January and will have newsflow in the next months. Big spread though but still my share for 2014 with ubc media if Audioboo- twitter with sound- takes off. Thanks for your reply Varies, I appreciate your input.

[varies] 20/11/2013 12:11

Mach100
I have thinking of buying back the shares I tendered at 17.2p butlooked carefully at the figures and concluded that one could do better elsewhere.I shall simply keep the shares I have left.
What sort of spread is there here ? Probably high enough to remove most of any profit.
If you do buy some, I wish you luck.

[mach100] 19/11/2013 13:03

Hmmm is this worth a punt? Got lots of cash and is doing an orderly withdrawal from investments. Paid a nice premium on the tender offer. I am put off by the high admin expenses although they seem to have reduced these and the fact that 1 pound is 100 rupees and its earning are denominated in rupees.

[deepvalueinvestor] 16/7/2013 23:38

The currency is a problem but be aware that Bloomberg etc have the market cap wrong as it is £45m and not £55m. I am assuming it will be another repayment of capital through a tender. The length is time to sell the assets is the great unknown so I remain a firm holder but not tempted to add.

[varies] 16/7/2013 10:28

£20 million divided by 362m = c.5.5p per share. I wonder whether this will be paid as a dividend or if there will be a repurchase of shares at a premium as before.
The fall in the rupee has spoilt our figures and I am not happy to see administrative expenses of £4m incurred in 2012/13.
All in all, I find this report rather disappointing.

[deepvalueinvestor] 11/3/2013 07:48

I had hoped we could wait for an IPO of Ocean Sparkle but Standard Chartered Private Equity paid a higher price for their stake than we have on our NAV so we may get a useful boost if they have a buyer in mind. I guess it could be Standard Chartered Private Equity again!

[deepvalueinvestor] 07/1/2013 20:08

Not a compelling short term trade like Spl but I feel comfortable as a holder as we should expect back, say 6p, per share within 6 months. An IPO for Ocean Sparkle seems increasingly likely for 2013 or 2014 with Standard Chartered Ventures taking a 20% stake at a higher level than our current valuation. If we get back 17p over two years, we can't complain too much after the disappointment of Ennore. True Nav is probably higher than last reported but with currency risk too, it doesn't look a no brainer to buy at 13p.

[badtime] 07/12/2012 09:28

Looks to be some value..nibbled...directors indicated more news on company wind down before end of year

[deepvalueinvestor] 06/12/2012 20:34

With the property sale, cash should now be up to 9p per share versus NAV of 17.2p and a share price of 13p. The remaining investments look more promising and I can see no reason that they would be sold at a discount. The Ocean Sparkle stake would almost cover the share price on its own.

Not sure where this is going but it seems logical that there will be a return of capital in early 2013. SPL looks the obvious alternative for those who believe in the opportunities presented by the lack of Indian port capacity. However, I really hope Eredene Capital is not simply wound up, as I feel patience would be rewarded.

[hannahh] 01/10/2012 10:13

Hi, you can read our latest report on Eredene at www.equitydevelopment.co.uk. I hope you find it useful.

Kind regards,
Equity Development

[toback] 04/7/2012 15:16

Good news here - and results due 13th I think.

[varies] 15/1/2012 21:40

topwest
good luck to us both !

[topvest] 15/1/2012 17:08

varies - I have shares in Hansa Trust plc and Utilico Emerging Markets - both of which are large holders in Ocean Wilsons. OCN has also been on my watch list for a while, and hoping to buy some of those as well as equity markets hit the next turbulent period.

At the end of the day, emerging market stocks sell off rapidly in a mini-crash and then rebound quickly when we come up the other side. I'm waiting for such an opportunity and haven't bought hardly any shares for the last couple of months. Think it's too early on ERE and OCN to make my first investment at the moment. Think both are well placed medium term though, so will look to get aboard when an investment is compelling.