Afferro Min Share Discussion Threads

[albertedwin] 07/9/2013 12:08

I am pleased to report that my several queries as set out in my above post 41509 yesterday have now been dealt with in consequence of my having now read the relevant parts of the Securityholder' Circular, a copy of which is in fact posted on the AFF website but which was unfortunately not picked up when initially accessing the website. So "panic over", at least for the time being.

[2xs] 07/9/2013 11:57

Pg68Income taxIndividuals who are resident in the UK for tax purposes and who hold Convertible Notes may be liable to UK income tax (under Chapter 8 of Part 4 of the Income Tax (Trading and Other Income) Act 2005) on the profit realized on a disposal of a Convertible Note (whether on redemption, sale or transfer of a Convertible Note or on conversion of a Convertible Note into IMIC Shares). For these purposes the profit realized on disposal is, broadly, the amount by which the proceeds received on disposal of a Convertible Note, or the market value of any IMIC Shares issued on the conversion of a Convertible Note, exceeds the market value of the Convertible Note at the time when it was issued, less certain costs.Individuals who are resident in the UK for tax purposes may be liable to UK income tax on interest received on Convertible Notes. For individuals, interest is normally taxable in the tax year in which it is received.So they will be treated as deeply discounted securities.Don't worry, all the boards option gains will be treated at capital gains.

[nav_mike] 07/9/2013 11:35

2XS

From where do you deduce that? My reading is that the interest portion is income, but any capital appreciation isnt,

The one thing Im not 100% sure on atm is whether we have to treat our AFF disposals as a sale @120, with a partial reinvestment into the bonds @40.

This would leave us with the full gain being crystallised now, but a loss on the bond being deferred until we sell out or they are repaid/converted.

[2xs] 07/9/2013 10:49

Not sure if its been posted here, but going through the docs it looks like any gains on the bonds will be treated as income and not capital gains. Surely a negative for a number of investors.

[greenroom78] 07/9/2013 10:46

I've got the Financial Ombudsman lined up ready. Will see how I go on Monday but I agree. HSBC will receive them regardless and if they choose not to pass them on they will take any benefits when they mature. Will help pay their bonuses I guess.

How is that not theft?

[greenroom78] 07/9/2013 10:28

Thanks guys. Am already looking into a switch. I'm looking at HL and think I will be going with them. I may keep an account with HSBC as I bank with them and aside from all their faults they do offer a few useful tools (DMA on SETS and SETSmm stocks being one of them). Downside is I don't think the switch will happen soon enough to allow me to keep the notes.

I'm therefore toying with sacrificing them and selling up or selling and switching them to a new trading account with HL (like a reverse Bed and ISA) off my own back. It may cost me a spread but if I try and time it right I shouldn't lose too much with that considering there is no stamp duty on AFF. Any transaction would only need to be short term as I'd be getting 80p back pretty soon after anyway.

That said, my first approach will be to have a(nother) big moan at them on Monday morning.

[michaelwhight] 07/9/2013 09:56

Green. FWIW. Gnatwest simply say they will hold the notes in a normal trading account. They've been pretty good and I like their mobile app for trading.

[effortless cool] 07/9/2013 09:44

Greenroom78,

HSBC sound appalling - you should switch elsewhere. I have used Stocktrade for many years; they operate through CREST, which is a lot better than being a nominee, and have been administratively very efficient. For my ISA, I have found Selftrade pretty good. I'm sure others here could recommend good alternatives.

Changing brokers is a pain but, given the awful service you have had from HSBC, I really think you should vote with your feet.

[greenroom78] 07/9/2013 09:31

On the subject of the price dip yesterday I have been expecting one. MMs have pushed the price up little by little to flush out a few more sells, I would now imagine the drop is to try and intimidate a few more into selling the notes cheaply.

[greenroom78] 07/9/2013 09:29

Just been told in a letter from HSBC that they still will not be able to receive the loan notes for me (so I have to forfeit them) as the loan notes are not going to be listed.

They then copy and paste the news release from Afferro at the bottom of their letter that says the loan notes will be listed on the Irish exchange.

Do these people not read what they send you and if so do they not see that they are contradicting themselves?

This is on top of the ISA problems I am having with them.

[ih_216427] 06/9/2013 21:29

Pro forma IMIC Afferro transaction
P.263/292

[ianbrewster] 06/9/2013 17:25

Just got details on how to vote from HL. Also confirmation that the note can not be held in an ISA.

[ih_216427] 06/9/2013 15:23

Finally received my number for internet voting
I voted no as i can not understand that a trustee has sold my house part cash and a part debt giving to the acqueror
the right to decide all the clauses(amount, conversion etc)

[michaelwhight] 06/9/2013 15:00

Natwest told me that they take care of everything and all I had to do is tell them which way I want to vote.

[albertedwin] 06/9/2013 14:29

It is now the 6th September and, as a Certificate Holder, I have also not yet received any proxy documentation such as is referred to in the RNS dated 28th August ahead of the Special Meeting to be held on the 16th September. Is anyone else also in this position ? And what is "the letter of transmission" referred to in JIMCAR's post No 41486 on the 31st August above, and indeed what is the substance of his enquiry and the answer to his question ? Presumably the enquiry relates to something referred to in the documentation supposed to be being sent out to all "Securityholders" as defined in the above RNS ? Frankly I find the whole takeover arrangement and the manner in which it is being implemented utterly confusing and highly unsatisfactory. Am I to take it that if I do not communicate with the Company or some other prescribed official in Canada by the 16th September I stand to lose my entitlement to the Loan Notes or are my concerns in this regard unfounded ? Any urgent assistance would be gratefully appreciated.

[nav_mike] 06/9/2013 14:29

I did ask this in the past but got no response...

Has anyone been able to see an actual quote for the IMIC listed bond? Ive found its page on the Irish GEM exchange, but when I try and view the price history nothing happens...

[superslob] 06/9/2013 13:44

Surprised by today's small fall, particularly when IMIC have just listed another bond and Kanabar says '' "We are very pleased to list these additional bond instruments in Dublin. The bond instruments were issued earlier this year in connection with our proposed acquisition of Afferro Mining Inc, a transaction that we expect to complete in the coming weeks."



INTERNATIONAL MINING & INFRASTRUCTURE CORPORATION PLC

("IMIC" or "the Company")

Listing of Further Bond Instruments

International Mining & Infrastructure Corporation plc (AIM: IMIC), the company focused on unlocking the value of African iron ore through infrastructure development and strategic investments in junior miners, announces it has listed further bond instruments in Dublin on the Irish Stock Exchange.

The listed bond instruments are convertible subordinated bonds issued in June 2013 to the value of US$25 million which was drawn down immediately.

The bond instruments have a coupon of 12%, payable in arrears semi-annually on 30 April and 30 October each year.

This listing is in addition to the listing announced on 15 August 2013 of bond instruments which comprise those dated 16 April 2013 to the value of US$15 million and those dated 6 May 2013, also to the value of US$15 million. The bond instruments each have a coupon of 8.75%

Haresh Kanabar, IMIC's Chairman, said: "We are very pleased to list these additional bond instruments in Dublin. The bond instruments were issued earlier this year in connection with our proposed acquisition of Afferro Mining Inc, a transaction that we expect to complete in the coming weeks."

[nav_mike] 05/9/2013 17:19

Be interesting to see what the price action is on the 17th, assuming there is the expected 'pro' vote at the meeting.

Im guessing there is still some discount ahead of the poll, and the price might rise a bit more once the deal is known to be on. Perhaps 90-95p?

[sean cadman] 05/9/2013 17:01

Its not as straight forward as that smith99, it looks like a great deal and it is but you have to be prepared to lose 8p and not see a return for 2 years, it goes against the grain to put money in and then lose 10% straight away, i am sure that is why a lot are holding back, 2 years is a long time!

[smith99] 05/9/2013 16:44

I still dont trust this lot, and I suspect neither does mr market - hence 8p for 46p in 2 years deal and there's a shortage of buyers of this incredible offer - hmmmm I'll keep what Ive got but no more above 80p thanks. Just in case.

[l234244] 05/9/2013 13:36

The way these Chinease deals are falling into place it is obvious that IMIC are just a vehicle for the government to harness a supply of iron ore.

[kombimatec] 05/9/2013 11:28

Looking more unlikely to fail every day, IMIC credentials grow with every release

[shavian] 05/9/2013 11:03

Only if it all works!

[kombimatec] 05/9/2013 10:55

I think this is a cracking deal. Currently you can turn 8p into 46p in 2 years. Not bad ah!