Central African Mining Share Discussion Threads

[davius] 18/9/2009 09:17

I have little doubt that it's the Gertler/Prarie holding...

He's probably pleased to see the back of these at 20p considering they were worth 2p not so long ago...

[dealy] 18/9/2009 08:59

this is important folks - where's the 788m share trade?

[geng] 18/9/2009 08:58

Anyone - where is this 788M shares reported?

As far as I can see total for yesterday was below 150M - even the graph above only shows

[darklord2] 18/9/2009 08:46

These are the steps that a company must take if it wants to take over another, as laid down by the Panel of Takeovers and Mergers:

Once a firm intention has been announced, the company making the offer must post an offer document to all shareholders within 28 days.

At least 50% of all shareholders must return their acceptance forms, backing the offer, by the 60th day after the company's mailing.

If fewer than 50% agree, the offer cannot go ahead and the bid has to lapse.

Since any revised offer has to be capable of being open for 14 days, the last date the company can revise its bid is day 46 (14 days before the 60-day deadline).

The target company may want to put up arguments against the takeover. It is entitled to do so, and the company making the offer is entitled to have seven days in which to react. So the last date in which the target firm may put up its arguments is day 39 (seven days before day 46).

[midasx] 18/9/2009 08:43

Seems strange that anyone would sell for less than 20p, when this figure would appear to be underpinned from here. What if it is not ENRC that have picked up all those 20p shares yesterday.

Would be very interesting if it turned out to be the chinese!

[eish] 18/9/2009 08:42

I like the idea that the same party has bought the 788,249,384 shares and the
65,000,000 from Oppenheimer Funds which represents 29.71% - no offer required but a decent blocking stake - beautiful!

[dealy] 18/9/2009 08:40

Davius

Where did you see the 788m share trade?

[thebull3] 18/9/2009 08:17

thanks davius

[eish] 18/9/2009 08:10

Glencore could be a dark horse with their arrangement with Gertie over at Katanga and then Gertie could put Africo (Kalakundi) on the table in another deal. Consolidation par excellence, throw in CRC from Metorex who continue under a cautionary and then wrap it all up in Xstrata.

[davius] 18/9/2009 07:59

ssnic, yesterday after the close they reported two large trades, which appears to have been TT International exiting at 20p (they had 73.7m shares). Then this morning there was another trade reported from 17:13 yesterday, for 788m shares, which as suggested must have been the Gertler/Prarie holding (they were given 815m shares for their stake in the joint venture).

This out this morning:

DJ MARKET TALK: ENRC May Face Bidding War For CAMEC

0737 GMT [Dow Jones] Eurasian Natural Resources Corp's (ENRC.LN) acquisition of Central African Minerals & Exploration Co (CFM.LN) would diversify ENRC's asset base by commodity and geography, but could also take the miner into a volatile region and potentially increase the company's cost of capital, Cazenove says. Sees CAMEC's cobalt assets as potentially world-class. "We therefore believe there will be interest from a number of other parties and see interloper risk as being high. In particular we would point to Chinese parties." Sees less rationale for an ENRC bid on African Minerals (AMI.LN). Has an in line recommendation on ENRC. Shares -0.7% at 889p. (JSA)

thebull, I think ENRC will bid and the board will have to agree. Assuming ENRC have bought the Prarie stake (and I'd question why Prarie would sell it out at 20p unless to ENRC) and those from TT, they will already be above 30% so as of this morning an offer becomes mandatory (at least, as soon as they report such a holding). It's hard to defend against such a large shareholder, so I'd expect capitulation by the board. Once the offer is formally tabled they'll set a deadline for acceptances and a timetable for payment. What that will be is speculation, but I'd suggest we're looking 4-8 weeks, perhaps a little longer. Hard to tell, the last bid situation I was in was IEC, it took ages to go through (several months) but once 90% acceptances was hit by the deadline, I had to wait about a fortnight for the cash.

[eish] 18/9/2009 07:58

Unless there is a Rule 9 "whitewash" which requires the approval of a majority of the remaining shareholders, a mandatory offer is required when 30% is reached.

[darklord2] 18/9/2009 07:47

thebull3 @ 50% the offer is mandatory

[thebull3] 18/9/2009 07:40

Davius, what would happen if Enrc make an offer of 20p and the management agree? what percentage do they need to push it through? and how long by the rules do you have to think about it, 7days?30days?

[ssnichani] 18/9/2009 07:40

Davius - 18 Sep'09 - 08:01 - 9079 of 9083
Morning wizzkid, I see that's a late reported from yesterday. That's about 27.5% so with recent dillution could well be, or at least most of his shares.
ENRC appear to have this in the bag if so (assuming it was they who bought).


The late reported from yesterday was in the region of 2.75% ?

[darklord2] 18/9/2009 07:36

Josels you seem confused?

[davius] 18/9/2009 07:19

I paid 18.375p josels. To be tucked away for 20p.

[josels] 18/9/2009 07:16

Davius

In case it helps, I managed to get some few at 18.25 attending the auction through L2Dealer by IG markets. I read something like that through this accout one has access to the market makers order book through IGmarkets own account, it is the first time I have used this and I am please. I have not read much just used it today for the first time

Regards

J

[wizzkid211] 18/9/2009 07:11

yep, it looks like a done deal...

[davius] 18/9/2009 07:01

Morning wizzkid, I see that's a late reported from yesterday. That's about 27.5% so with recent dillution could well be, or at least most of his shares.

ENRC appear to have this in the bag if so (assuming it was they who bought).

[wizzkid211] 18/9/2009 06:40

788249384 shares at 20p, gertler out?

[davius] 18/9/2009 06:30

> cjdrum - 17 Sep'09 - 23:20 - 9073 of 9076
> i hope the shares were sold to a willing buyer. If the MMs have hold of
> them, the price will drop as they seek to get buyers back in.

You're kidding? Why would anyone be an unwilling buyer? And do you really think that the market makers would take them on at 20p and then sell them for less?

[davius] 18/9/2009 06:26

RNS this morning, another sale. The oppenheimer fund sold 65m shares at 20p. The MMs can't be taking these as in the open market they've been going for 18.5-19p. Very likely to be ENRC. With those and the TT shares they will already be at 4%. It's starting to look like a done deal. If there's a chance of picking more up at 18.5p this morning I might give it a go, there's 1.5p in it and possibly a bit more just for hanging on a few weeks.

[dealy] 17/9/2009 22:57

It looks to me like Gertler has agreed to sell his 35% stake for 20p and, along perhaps with some other holders and the 4% or so that ENRC probably picked up today at 20p the plan might be to present a fait accompli takeover i.e. 50% or so of the shares have been secured and the board will cave in and recommend the offer to all shareholders- most of whom won't vote against it.

All depends on Gertler but I have a feeling the above will transpire. Having been down at tuppence just 8 months ago this isn't the worst result in the world.

[dealy] 17/9/2009 22:30

Davius

I concur completely.

ENRC bought those shares and we will all get at least 20p for ours.

[cjdrum] 17/9/2009 22:20

i hope the shares were sold to a willing buyer. If the MMs have hold of them, the price will drop as they seek to get buyers back in.

Here's to your suggestion. I'm sticking in there.