European Nickel Share Discussion Threads

[richscotsman] 31/7/2012 15:32

1983

That is a good question..... which rules are we playing by?

Whichever way, imho they will need to be parting with c48-55p/share to seal a deal without shareholder rebellion or a counter offer.

Rich

[share1983] 31/7/2012 14:07

At risk of sounding like a rookie, can anyone explain what would actually happen if an offer was made?

I assume it falls to a shareholder vote and majority decides?

And if it did go through how would private investors actually get paid? Would it be just like selling the shares or is there an option to take shares of the acquiring company?

Also has anyone any ideas on what sort of timescales we could be looking at?

(I am aware that nothing is set in stone and could easily change)

Thanks,

[metex] 31/7/2012 11:28

Re: ENK`s Acoje Chromite assets....and their potential contribution to ENK`s overall valuation!

Some fairly dated information from Rusina era....but it does give some good background information....on ENK`s Acoje Chromite assets....and perhaps reveals why....GHGC have become involved in them:

[shareho1der] 31/7/2012 00:12

I have always said this approach will come to nothing, back to 10p before the weekend.
Glad I sold out at 18p on Friday.

[togglebrush] 30/7/2012 16:31

Daily Trading Volume, before close, looks like 1.1 million with by calculation an average deal of over £1,500. Largest trades being around £8,500. The day for smaller trades ???

[greenroom78] 30/7/2012 16:28

I'm in for some of these this afternoon. Bid or no bid they look far too cheap. I had it flagged up to me on the bid news on Friday but didn't have time to research it until over the weekend.

Strange market valuation (EV) on this one, but then same can be said for a lot of AIM miners.

[richscotsman] 30/7/2012 14:03

metex

You made a good point but the BFS is, in my view, a very significant step forward and one which will only be arrived at after years of toil by management and patience on the investors part. It would be a crime to let this go cheap having come this far and with so much potential. I would rather put up with some dilution to fast track construction.

Rich

[metex] 30/7/2012 12:55

richscotsman....entirely understand your sentiments.....at this juncture.

But probably there are at least two problems IMHO....they might affect the final decisions of the various interested parties....that is....other than an actual bid price itself....(should that ever materialise).

One problem:

It looks like two major shareholders....Montoya and D&A Income....came to the party relatively late....i.e. in early 2011....so most of their holdings....are probably sub 20p.

A doubling or tripling of their holdings....maybe sufficient to sway them.

Second problem:

For all the years....they`ve been involved....up to now....it appears that the present ENK top dogs....the old Rusina crowd....other than successfully....getting third parties....to "dig up and truck earth"....and also doing very important commercial paper deals....(and not meaning to sound disrespectful)....they have never actually brought to production....any of their assets.

So some ENK investors....might be forgiven for thinking....why should a leopard "change it`s spots"?

Therefore....a good solid bid right now....might tempt the ENK management....(as they hinted....in their Potential Acquirer RNS last week)....before they are required perhaps....post BFS....to bring to the boardroom table....an entirely different set of management skills....and all this...in the context....of them having spent....so much precious time....speedily cleansing the books....for seemingly....such a circumstance.

Either way....bid or no bid....very interesting times!....DYOR.

[drewz] 30/7/2012 11:34

ENK won't be sold below 40p imho. Could have an opportunistic bid scenario also at SHG in the next few weeks; like ENK hugely undervalued on resource and cash generative metrics - just about to start production in August.

[zhockey] 30/7/2012 11:22

Seeing price action of Friday, is it safe to assume the initial offer was 18p?

[richscotsman] 30/7/2012 10:26

Fwiw, I don't think the interest will result in a sale, enk is hugely undervalued and I for one want a massive premium to the current share price before I would vote for it. My holding is only tiny but I hope the large holders will also want to see value out of the success of enk and not a premature sale.

[metex] 30/7/2012 09:50

ian50....you also mentioned that third party interest....might make the situation interesting....but the pre-emptive action....of GHGC re: ZCMC....and the Acoje Chromite assets....has reduced that possibility IMHO.

Because should it be GHGC....ENK investors shouldn`t forget....they are a "de facto" off-take company in their own right....as they provide the links the final off-takers....so they wouldn`t necessarily want to see another company....in the mix....on their own patch in Zambales....which on the face of it....at least....would make for a messy outcome for them.

Hence if GHGC....are going to make an offer....from their side....it makes sense to approach with a bid now....as they would have:

1/ 100% control of considerable new nickel laterite assets....both at Acoje and ZCMC.

2/ A new Acoje nickel laterite processing plant....initially for resources at Acoje and ZCMC....and eventually for the processing of their other Zambales nickel laterite assets too!

3/ To complement....their existing Chromite operations....they would have 100% ownership too!.....of the Chromite assets at Acoje....which would benefit....not only from their Chromite processing expertise....but the profits from which....would theoretically serve....to pay for the purchase of ENK....and the construction of both....an Acoje nickel processing plant....and a Acoje chromite processing plant.

So if it is GHGC....then there`s probably a better chance....in this game of cards....that they would meet the ENK BOD`s share price expectations....(through a reasonable premium)....in order to hold....a "Full House"....with regard to Acoje and ZCMC assets.

If it`s not GHGC....then as you say....perhaps they should "come to the party" too!....and quick!

Time will out!....all IMHO and DYOR.

[ian 50] 30/7/2012 09:28

Metex-- in this last post of yours are you intermating/ speculating that by ENK where getting the books/ together-- they had either , say notice / or big time whisper that a potential bidder was on Th way.

Shark on Iii was at the meeting in London and if it Is taken as true , which he seems to come across as an honest chap maybe ,their glee when talking maybe mentioning. 50p that this was over the horizion bid,

Guy walker when he arrived was put in so he could straighten out Enk as montoya and asset where concerned about Enk's affairs - this is what u mentioned in a previous post --

That Enk are or where vulnerable to a bid -- it therefore could follow that the shareholders might be in for long term or by getting on with so much lately,, with a good BFS,, they're in a position to negotiate.


Ian

[zhockey] 30/7/2012 09:19

Bones,

DN all hype in my view, not familiar we Regency, other than the Thai Brandy :)

[jezza123] 30/7/2012 08:53

Well the RNS posted today shows that any price north of 38p would enable the vast bulk of options to be exercised - so I'd agree any price around say 40p+ would be sufficient I reckon (+30% to NAV).

Expiry
Exercise date
price
75,000 - GBP1.28 31/03/14
27,713 - GBP0.92 24/12/14
25,000 - GBP1.20 26/06/15
3,500,000 - GBP0.28 01/10/15
Options 1,851,000 - GBP0.38 19/10/15
(description 18,499 - GBP1.62 20/10/15
and conversion 1,300,000 - GBP0.28 30/08/16
factor) 2,973,000 - GBP0.21 15/10/16
25,000 - GBP2.35 04/06/17
45,773 - GBP2.35 18/06/17
40,871 - GBP1.80 17/10/17
29,997 - GBP1.60 27/02/18
153,358 - GBP1.60 12/03/18
125,000 - GBP0.10 16/12/18
370,940 - GBP0.40 15/04/19

200,000 - GBP0.256 08/07/12
800,000 - GBP0.2768 21/07/12
625,000 - GBP0.36 08/12/12
1,500,000 - GBP0.36 08/12/12
1,000,000 - GBP0.32 08/12/12
763,000 - GBP0.28 29/03/13
7.7 Warrants 960,570 - GBP0.28 18/06/13

[metex] 30/7/2012 07:44

Mattybuoy....this RNS outlines the situation regarding Montemina....(deal done)....and Chromite assets at Acoje:


Zambales Diversified Metals Corporation ('ZDMC'), holder of the Acoje tenement and a subsidiary of ENK, for the exploration of chromite and other underground minerals on the Acoje tenement.


GHGC involved in both:





Similar share price action in Oz....on release of potential Acquirer statement there....plus....release of Quarterly Cash Flow Report....outlined in this morning`s RNS:



General link to ASX....for reference:




Two big clues maybe....to the fact that this potential bid has materialised now....(and shouldn`t have come as a surprise)....and who might be interested in ENK:


1/ The speed and prioritising of management resource time....on cleaning the books up....regarding non-core assets....especially the Berong and TMC assets.

and:

2/ The involvement of GHGC in the Chromite asset development at Acoje.


But it`s the "big clue"....to the question....that all ENK investors want answering....i.e.....the potential "take out" price!....and where to find it!

Well....just surmising....but why not go back to the 25th June 2012....and the RNS that day....The Grant of Options RNS....and the timing of it:


25 June 2012 - ENK plc ("ENK" or the "Company") (AIM, PLUS, ASX: ENK) announces that on 21 June 2012 the Board of the Company agreed, subject to shareholder approval, to issue 2,000,000 options to Managing Director Robert Gregory for no consideration, and 1,500,000 options to Finance Director Mark Hanlon for no consideration (the "Options"). The Options have been granted on the following major terms:

-- Term of 5 years
-- Exercise Price of 16 pence
-- Vesting conditions:

-- 1/3 exerciseable when the share price has traded at 24 pence or higher for 10 consecutive trading days, but in any event no earlier than 12 months from date of issue,

-- 1/3 exerciseable when the share price has traded at 32 pence or higher for 10 consecutive trading days but in any event no earlier than 24 months from date of issue, and

-- 1/3 exerciseable when the share price has traded at 48 pence or higher for 10 consecutive trading days but in any event no earlier than 36 months from date of issue.

If shareholders approve the issue of options at the Annual General Meeting of the Company on 30 August 2012 the resultant beneficial ownership of Mr Gregory and Mr Hanlon is set out below:


Name Number of Options Total number Current Shareholding Percentage
Granted of options following in ENK of Issued
grant Share Capital
Rob Gregory 2,000,000 4,000,000 1,235,000 0.47
------------------ ---------------------- --------------------- ---------------
Mark Hanlon 1,500,000 3,000,000 776,800 0.30
------------------ ---------------------- --------------------- ---------------


As of the date of this announcement no options have vested.



Again....total speculation....but could something around the 48p figure....(presently not granted....earlier than the third year)....probably be a figure....that would at least satisfy two Directors....the majority of main institutional investors....and perhaps quite a few ENK investors too!

Note....if it is GHGC....then the returns from Acoje Chromite assets alone....would probably easily cover....both the purchase of ENK....and the construction of the Acoje processing plant.

Might be an interesting few weeks now....in the run up to the AGM....on the 30th August 2012.

As usual....time will out!....all IMHO and DYOR.

[togglebrush] 30/7/2012 06:28

Press about our largest investor who now holds 18%



also
1. www.enickel.co.uk/index.php/download_file/366/139/
File Format: PDF/Adobe Acrobat
18 Apr 2012 – director. Guy Walker was nominated to the Board by major shareholders Montoya Investments. Limited and D&A Income Limited which account ...

[bones30] 30/7/2012 00:28

zhockey - I take it you are aware of Regency and DirectNickel?

[mattybuoy] 29/7/2012 22:46

I will be very interested to learn who this is.

Can anyone clarify whether the Montemina deal is done and dusted yet? I note that there is a payment due on the 15th August and another one on 15th November.

I am wondering about who currently owns the title to the chromite and "other underground metals".

[zhockey] 29/7/2012 22:27

Management aren't stupid, they know the latterite processing would never be a go'er at $7 Ni.

A takeout above cash will give a decent return, better than going bust in a few years.

I hope you all end up making something whatever the finial price is.

[ian 50] 29/7/2012 16:58

Thank you metex&togg

What I'm trying to Work out is ---at what sort of average shr/pr have the top ,say,20 shareholders bought in over the year/s just like everyone I'm sure some are in a little toppier than they would like to acknowledge .

This could have consideration at some point.

[togglebrush] 29/7/2012 16:09

There have changes in significant major shareholders in past 4 months. See my earlier post 7372. My guess is that many were Old Major to New Major shareholders.

The tie in with the RNS is not perfect but Table below shows the prices, and volumes on days of top quartile volumes. Which can give you an idea of what they paid!

Swing__Date_____Open___High___Low___Close__Volume

_8.2% 20/03/2012 13.00 13.00 12.00 12.13 12,238,540
_4.0% 21/03/2012 12.00 12.50 12.00 12.50 59,928,218
'
10.2% 11/04/2012 10.50 10.50 _9.50 _9.83 ___657,655
'
_4.4% 16/05/2012 _9.50 _9.68 _9.25 _9.68 _1,141,677
'
23.2% 01/06/2012 _9.00 11.50 _8.95 11.00 _4,444,280
'
_3.3% 13/06/2012 11.75 11.75 11.38 11.38 39,060,976
'
_4.3% 29/06/2012 11.50 12.00 11.50 11.63 12,976,720
'
_2.1% 11/07/2012 12.00 12.00 11.75 12.00 _1,285,615
'
_3.1% 16/07/2012 11.75 12.13 11.75 12.13 _1,028,858
'
_7.3% 26/07/2012 12.75 13.75 12.75 13.75 ___868,115
35.5% 27/07/2012 13.25 19.50 13.25 17.63 _2,883,296

Stats based on ADVFN data from 1st January 2011 for Daily Trading Volumes

Maximum______________ 59,928,218____21 March 2012
1 in 100 day above ___14,796,858
Top Quartile above ______650,281
Median___________________278,509

Swing is Price change (High – Low)/Close