Central African Mining Share Discussion Threads

[darklord2] 17/9/2009 11:34

A better statement would be "this undervalues the comapany" its very easy to do Cadburys managed it successfully

[the jackel] 17/9/2009 11:29

ENRC are minnows compared to the likes of Vale there intial offer of 20p was just testing the water! CFM saying we will discuss this offer on Monday was basically a statement to all other parties to make there offers!

[eish] 17/9/2009 11:18

ENRC are busy:
17 September 2009




African Minerals Limited

("African Minerals" or "the Company")

Update on Strategic Discussions

African Minerals Limited (AIM:AMI), the mineral exploration and development company with significant iron ore and base metal interests in Sierra Leone, West Africa, confirms that it is in advanced discussions with Eurasian Natural Resources Corporation plc (LSE: ENRC) and several large industrial corporations in Asia, which could involve an offer for the Company or the funding of the development of its world-class iron ore asset at Tonkolili.

There is no certainty at this stage, however, that discussions will lead to a corporate transaction. Further announcements will be made in due course, as appropriate.

[thewoo] 17/9/2009 11:18

ENRC now in talks to take over AMI:-

TIDMAMI TIDMENRC

RNS Number : 2256Z
African Minerals Ltd
17 September 2009

?


17 September 2009


African Minerals Limited
("African Minerals" or "the Company")
Update on Strategic Discussions
African Minerals Limited (AIM:AMI), the mineral exploration and development
company with significant iron ore and base metal interests in Sierra Leone, West
Africa, confirms that it is in advanced discussions with Eurasian Natural
Resources Corporation plc (LSE: ENRC) and several large industrial corporations
in Asia, which could involve an offer for the Company or the funding of the
development of its world-class iron ore asset at Tonkolili.
There is no certainty at this stage, however, that discussions will lead to a
corporate transaction. Further announcements will be made in due course, as
appropriate.

[midasx] 17/9/2009 11:06

ENRC have shown their cards with an opening bet of 20p, the other players are sitting down at the table and about to call raise or fold. Hopefully China will hold the big slick as they need to win the game!

[darklord2] 17/9/2009 10:20

Geng right lets get this straight ok Ive been racking my brains from when i sat my exams and to have the 35% on board is NOT necessary.. this quote should help

"Under Rule 9.1 of the Takeover Code, if a company buys shares equal to 30 per cent or more of the voting rights in a target business, it must make an offer for the rest of the equity"

"Under Rule 7.1, once the 30 per cent threshold is reached, the offer document must be altered to become "mandatory". This means that any former offer conditions fall away, leaving only one condition - that the buyer must secure at least 50 per cent of acceptances from shareholders"

So as you can see the buyer only needs 50% of acceptances.

Please try not to quote information which is not correct we are all in the same boat here

[darklord2] 17/9/2009 10:17

Zangdook no you cant buy more all you can do is make an increased offer. If that is refused i beleive you get a third bite of the cherry if this is rejected you cant make a bid for 1 year

[zangdook] 17/9/2009 10:13

Out of interest, not quite on topic

If you buy 30%, make an offer for the rest and the offer is rejected, can you go on buying and increase your holding beyond 30%?

[darklord2] 17/9/2009 10:06

This is a quote from an mining analyst

"The bid is definatly lower than i had expected, but it does represent a good premium to where the stock has been trading... a cash bid is certainly attractive in these markets" B.Salier

[darklord2] 17/9/2009 10:02

P.s i am long, but im looking at those 3 facts. As i said we have hope and speculation and thats it and we have facts and the facts are the board have been happy to negotiate at 20p a share

[darklord2] 17/9/2009 10:00

Where is the management statement aka Cadburys saying this undervalues the company? Why have the board happily let talks proceed to an advanced level for 20p a share? Why is the market not anticiptaing a counter offer?

[geng] 17/9/2009 09:58

Look you are all missing the point !

If the Chinese do a deal with Dan Gertler for even 29.9% of his holding the deal is OFF!

The result would be a much higher share price.


Anyone wanting to buy CFM must have Dan Gertler on board. His 35% holding can put a stop to any deal - SAVY ??

[davius] 17/9/2009 09:55

I too think there's a decent chance of a counter offer, but with ENRC setting the base line so low I think that has well and truly put paid to any significantly higher price. ENRC no doubt have some smart negotiators and may well be talking to other prospective bidders about selling off particular assets. We may just have to settle for 20p, or we may get lucky and see 22-25p. I'd be very surprised to see more than that.

Still, probably just as well to stick with it now, perhaps buy a few more if it dips to around the 18p level, and await the end game.

[ldmachin] 17/9/2009 09:50

Put yourself in the shoes of the other suitors (the chinese, vale, etc)... do you think they are going to sit by idle and let ENRC get CAMEC for a knock down price 20p a share?

Very unlikely in my opinion. This is a one time opportunity to get their hands on a business at a knocked down price because of the 'recession' fallout. At the very least they will put in a bid a couple of pence higher. As the bids come in the price will go higher and higher. It's only a case of when does the bidding get too expensive for the suitors and they start pulling out.

[darklord2] 17/9/2009 09:48

Hmmm well i dont feel positive, the market will price in premiums or counter offers - hence cadburys trading at 786 when the bid is 745 (slightly less actually with the weakening of Krafts share price and weakness in the dollar)

So the fact that we are at 18.25- 18.50 does not fill me with confidence, while the fact that the board are in 'advanceded discussions' as opposed to saying this undervalues the company is also not positive.

All we can for is a white knight bidder to usurp the advanced talks.

[pistolpete100] 17/9/2009 09:43

what do we think is the potential for a rivial bid - or this bid to get knocked back? "Advanced discussions" does indicate that the main players are on board so I think its more likley that a rival bid would have to emerge were we to get more than 20p - thoughts?

[darklord2] 17/9/2009 09:41

Thank you Davius thats puts the flesh on my factual bones

[davius] 17/9/2009 09:36

geng, Dan Gertler, through Prarie, aquired 39.9% of CAMEC as payment in shares for his 50% stake in a JV. The obligation to bid was waived. The stake has since been dilluted down to 35%, quite why it doesn't appear on the list of major holders is anyone's guess.

[utterly pointless] 17/9/2009 09:14

geng. you're wrong. just do a google search on "maximum holding before full bid" or something like that

[dealy] 17/9/2009 09:13

You need to get a dispensation (waiver) from the shareholders to allow a stake of more than 30% without having to make a mandatory bid for all the shares. This was probably part of the EGM approval process when the Praire/Gertler deal was approved last year.

[geng] 17/9/2009 09:08

Darklord - looks like there's a good 40%+ missing from your list.

So.. how do you explain Dan Gertler holding 35% - this is a published and undisputed fact !

Your list also doesn't include TT who have been buying recently