The Earl of Acol
23 Nov 2016
Re: Bored We seem to be on the home straight now sadly. I am assuming funds will be available fairly promptly after the suspension. Am I correct? Tried to sell in the market today and only was offerred 34.2p.
Donatron
16 Nov 2016
Bored Getting pretty bored waiting for something to happen now.I am in the process of buying a house and would like to use the proceeds from these shares (at 36p) towards that. I only have 3-4 weeks before I need the money, so at this rate I'm going to have to lose out on thousands of pounds by selling out at 31/32p instead.I wonder when this sorry debacle will be over...?
The Earl of Acol
21 Oct 2016
Re: results That did make me smile!!
Donatron
21 Oct 2016
Re: results I liked the analogy on LSE by the way (not sure if the poster is on here too):"This RNS is like being kicked out of a good party. But your friends are still inside texting you to tell you how good it is."
Donatron
21 Oct 2016
Re: results It is pretty gutting, but can't see any solution really. I am reluctant to buy non-GBP shares on the whole. I did vaguely look into Iluka, but then you have to start thinking about FX movements or trying to hedge your FX exposure. Let me know if you get anywhere though. In my brief forays, I couldn't even find a broker that would allows me to buy shares on the ASX.I would have expected this to reach at least 50p by the time of the full year results, so we are missing out on at least 39% gain (36p to 50p) in the short term. The post-Brexit slump in the pound would have also helped us out considerably.What could have been...
The Earl of Acol
21 Oct 2016
results Today's figures support my view that the take out price was far too low. I suspect this done deal will go through and would be surprised if it was blocked by the German authorities. I intend to research the acquirer and see if they are worth buying.
Donatron
08 Sep 2016
Re: Will institutions sell Interesting times. I'd sold half my holding at 34.5p to put it elsewhere.I doubt very much that the merger won't go through, but it does mean that the brakes have been put on the whole process for a few weeks. They only have until 30 September to release their half year results, so they must be DESPERATE to avoid having to publish those if they weren't going to do it before de-listing.Q3 results I doubt we will ever see. They have no obligation to report production figures outside of the half yearly reports, so expect those to disappear without a trace.I have made some decent money off SRX, but this whole experience has left me very reluctant to invest in a similar AIM company again. So many AIM resource stocks perform terribly (I have lost quite a bit of money on them in the past), so to find one that could be brilliant, only to be denied the opportunity to continue to share in its future growth, is flipping infuriating.
The Earl of Acol
07 Sep 2016
Re: Will institutions sell Now this is getting interesting. I suspect the institutions are still invested. The share price seems to have been held back since the offer to ensure it keeps below 36p.I kept my holding in the ISA but sold the others I held.I agree that if this sale falls though 20p is possible but in the longer term this share has a value well in excess of this current offer IMO.
donkey derby
06 Sep 2016
Re: Will institutions sell Having sold my 300,000 shares in the market to buy into DJI and FAM (save for those in my SIPP, I had my finger over the buy button to buy back 50K today at 29.2 pence. Then I thought will happen if the bid is blocked or the parties agree over the next 5 days to cancel the merger; the possibility is that in that event the price will fall back to 20 pence or so.There is little doubt that the interims which were last year released on 26 August have been held back. The unaudited H1 results should show a good improvement; note I use the word should.Then there will be the Q3 results due early October.The SPAngel comments on Proactive are a must read. In short the Germans do not like or want a level playing field as far as both consumers and producers are concerned. Why? It does not suit them. The EU competition policies. PAH. Just one of the reasons I voted Brexit.I said many times that SRL could become a good cash cow. Might not suit Pala but then tough.
dunokay
06 Sep 2016
Re: Will institutions sell Who would have thought it? Maybe the German antitrust authorities will save SRX! Or at least the proceedings will take us past some results that show 36p to be the ripoff it is.
Donatron
04 Aug 2016
Re: Will institutions sell We have no choice. They have bid for 100% of the share capital and only require a 50% majority in order to push that through. See for example:[link] out this part though:"As long as that compensation is deemed to be fair value for the stock, the recourse for the objecting minority shareholders is limited."Do we believe 36p is fair value? No!Even in the absence of another offer to push up the price, the company should have carried out an independent valuation and rejected anything below the range of valuations provided. Anything else is eroding wider shareholder value in the name of Pala's interests.So the recourse for shareholders is presumably to obtain an independent valuation and launch legal action against the company/board for allowing the deal to go through. The board is:Robert Edwards - independentJohn Sisay - independentStephen Gill - PalaPhillip Day - PalaCharles Entrekin - independentAlex Kamara - independentRichard Lister - independentNot sure how board decisions are made, but presumably it is a simple vote. So the 5 independent board members should have voted down the offer and it should never have been put to shareholders in the first place. The board are voted in by all shareholders to represent their interests, so they wouldn't automatically put the deal to shareholders unless they were first happy that it satisfied those interests. Instead, they voted unanimously in favour!Pala as shareholders are not the same as Pala as members of the board, but I think the two have been muddied here.Presumably if the deal had been rejected at board level, Pala would have had to try and press for a special resolution to call an extraordinary meeting or something similar. Not sure what the % vote requirement is for that, but I would have thought it would be at least 75%, i.e. greater than the irrevocable undertakings received. So no deal could have been passed.The independent directors have proved spineless against what is a ridiculously exploitative offer. No wonder UBS gave Iluka a massive "well done lads" for bagging a huge earnings contributor at a knock down price:[link]
The Earl of Acol
03 Aug 2016
Will institutions sell While this is a done deal with more than 50% acceptances I wonder if the institutional holders will sell. When Pala purchased at 30p most of them stayed put. I am very disappointed at the buy out price expecting at least 60p. I would like others thoughts on whether it is worth staying put rather than selling. I appreciate that would not be a good idea if there were 90% plus acceptances but feel this share should be valued at least 50% more than the current offer. My only consolation is that I have a small overall profit having averaged down at 18p. I also sold out to Pala at 30p having purchased at around 4p and then kicked myself when they went to 60p plus. Hence my current thoughts and questions.
wheresmymoney
01 Aug 2016
Re: Fairly annoyed In the words of that miserable dragons den Bannatyne - Ah'mmm ootSold the remainder - better used elsewhereBeen in this one for 10 years or so. Shouldacoulda invested far more wisely - there were riches to be made in the ride from 3p to 60p
donkey derby
01 Aug 2016
Re: Fairly annoyed Add Donatron the fact as one friend of mine reminded me this morning that SRX is registered in BVI.
Donatron
01 Aug 2016
Fairly annoyed The price is ridiculous in my opinion. It doesn't reflect the current operations, let alone any kind of premium to take into account future pipeline, expansion, etc, etc.So why has it happened? I can only assume that Pala could not find any other way to offload its large holding in the foreseeable future. For me, the key phrase in the RNS is:"The SRL Board believes that the Acquisition presents an opportunity for all SRL Shareholders to crystallise value for their shareholdings which may not be achieved in the near term if SRL were to remain independent and quoted on AIM."Any reference to "SRL shareholders" should be taken to mean "Pala" throughout the document, given that they are controlling party and only act in their own interest. So essentially Pala could see no way of selling their shares through AIM, have presumably exhausted several other avenues and so in the end decided to take what looks like a fire sale price in order to realise some quick cash. Presumably their view is that the time/effort factor in managing the company no longer justifies the rewards.I guess there is nothing we can do - that is the risk you take when one party holds a majority of shares in a listed company. That said, I do believe the directors of this company have acted, at best, unethically. They should act to create value on behalf of all shareholders, but it's pretty clear that this whole decision has been taken in the interests on behalf of Pala. A truly independent director would have pushed for a far higher price.What particularly irks me is that Pala are making all other shareholders sell out as well. The deal should have been structured as an open offer, much like Pala's own 30p offer back in the day. That way, each shareholder can decide whether the investment still fits in with their own investment horizon, etc, etc.I can't complain TOO much, as hold at an average of 19.8p. However, this was an investment I felt particularly optimistically about and now I will be denied the opportunity to share in its future growth. I guess the only thing for it would be to hold our noses and buy shares in Iluka?
