AlphaCentauri
24 Nov 2017
Re: Current Position RPI are doing a good job in making investors panic. The current situation is that RPI can do little while the company remains in administration. Considering the way they have conducted themselves I would want rather more than the current offer and there is no guarantee that they actually have the money to pay for your shares too.China, Africa and the AIM market is about as toxic a combination as one could possible invest in. There are still plenty of big hitters (with big lawyers) out there who have not accepted the offer so I am happy to sit it out until the end. My portfolio goes up and down every day more than my likely loss on this one so I am not getting too excited out it. As always IMHO and DYOR.
HPC Follower
24 Nov 2017
Current Position How does a Takeover work?A takeover occurs when one company (usually a larger company, known as the Bidding company, i.e. RPI) attempts to take control over another company (usually a smaller company, i.e. ASA, known as the target company).A takeover usually starts life as an elective event. This means that the shareholders of the target company choose whether or not they want the takeover to go ahead by accepting the offer. For a standard UK takeover a certain percentage of the target company's share capital is required for the offer to go ahead and this can happen in 3 stages (often referred to as 'ID's'):Unconditional as to acceptances (meaning the offer can continue) ACHIEVEDUnconditional in all respects (meaning the offer will go ahead) ACHIEVED WITH >50% ACCEPTANCES - THOSE ACCEPTING CANNOT NOW WITHDRAW BUT THERE IS A WINDOW FOR OTHERS TO ACCEPT AS WELL. IT'S UNCLEAR WHETHER THOSE NO ACCEPTING WILL JUST RETAIN THEIR SHARES - THIS COULD WELL BE THE CASE HERE.Compulsory acquisition or 980 (meaning the bidding company has acquired over 90% of the target company's shares and will compulsory acquire the remaining shares, regardless of whether shareholders have accepted the offer or not). At this point it becomes non-elective or a mandatory event. LONG WAY TO GO YET AND RPI COULD JUST PROCEED WITH THEIR 52% MAJORITY HOLDING TO RUN THE COMPANY (WHICH LOOKS LIKELY NOW)- BUT ADMINISTRATORS COULD DECIDE TO SELL THE ASSETS DIRECTLY TO RPI IF THEY WILL PAY THE CREDITORS AND THE PROMISED 2.1 A SHARE TO THOSE WHO HAVE ACCEPTED. IN THIS CASE, THOSE WHO HAVE NOT ACCEPTED THE OFFER AS WRITTEN (IF MY READING IS RIGHT) COULD THEN GET NOTHING AT ALL... ALTERNATIVELY, THE ADMINISTRATORS COULD JUST WAIT THIS OUT UNTIL THEIR POSITION IS FORCED (BY CREDITORS PROBABLY) OR THE BIDDER ACHIEVES THE 90% SOUGHT. THE 48% WHO HAVEN'T ACCEPTED ARE BEING SQUEEZED - IS THE OFFER BETTER THAN POTENTIALLY NOTHING... CAN'T SEE A "WHITE KNIGHT" COMING IN TO PAY MORE NOR ANY REAL CHANCE TO GET THE LOST MONEY BACK QUICKLY... BUT NEW MANAGEMENT AND MONEY MAY TURN THE COMPANY AROUND FOR THOSE STILL KEEPING THEIR SHARES.The company can revise or extend the deadline of the offer at any time and this process can take many months. After the offer has reached the Compulsory Acquisition stage (>90% ACCEPTANCES), the offer will be accepted by default offer you apply to the Courts to dissent to the offer.SO WHAT SHOULD THE 48% HOLDERS DO NOW?
HPC Follower
24 Nov 2017
Re: Interesting post on ADVFN It would be good to know what our position will be, guessed here:-a) accept the offer - here I assume that we would get 2.1p a share and RPI would grow it's share of ASA plc be the majority shareholder (with representation on the board) should ASA come out of administration with the promised $40m loan at 5% to clear debts, etc. i.e. leave with cash. We would also get the cash if RPI buy the company direct from the receivers/administration as I understand it.b) reject the offer and gamble that ASA plc will return from administration in good health, retaining our shares at a value which will be determined by the market (could be higher)... but risk getting nothing if ZIOC is folded and sold directly to RPI after paying off creditors first.What do others think? Should we sell or hold?
AlphaCentauri
23 Nov 2017
Re: Interesting post on ADVFN That was actually me! I spoke to somebody very close to the action this morning. As with all these things information often has a specific time and date for release.
roco200
23 Nov 2017
Interesting post on ADVFN TimGW I have it on good authority that there will be further, potentially encouraging, news before the weekend.......!
dara44
22 Nov 2017
Re: ASA Offer now Unconditional I wonder what the Administrators have to say about this - but a very good point and just shows the lengths this lot will go to - I'd love it if they didn't get their hands on this or had to pay a lot more - dream on!!
AlphaCentauri
22 Nov 2017
Re: ASA Offer now Unconditional It is a variation of Project Fear. Stand your ground, they cannot take your shares if you do not want them to have them.
roco200
21 Nov 2017
Re: ASA Offer now Unconditional I would suggest we need to be careful, as this RNS is from RPI, not the Co. and not the Administrator.How can they waved it down to 50% + 1 share from 90%?Is this authorised? I think we need to try and check the validity of this communication before being panicked into accepting.
dara44
21 Nov 2017
Re: ASA Offer now Unconditional I know I shouldn't be surprised - but has allowed the consent to lower the acceptance to 50% as it just stinks!!I'm sorry I'm not close enough to this company to provide an in-depth knowledge on these proceedings,
HPC Follower
21 Nov 2017
ASA Offer now Unconditional Looks like ASA shareholders who were holding out have no choice with the "hurdle dropped from 90% to 50%"... Why is it that smaller shareholders always seem to be pushed out just before such companies start to be really profitable... Looks like I will have to accept the cash offer myself now before the 15th December closing date, to at least assure myself of some financial return - not what I hoped... COMMENTS ANYONE KNOWLEDGEABLE HERE??? ASA RESOURCE GROUP PLC ("ASA"
---------- -------OFFER UNCONDITIONAL IN ALL RESPECTSRPI today announces that, in accordance with the terms and conditions of the Offer set out in the Offer Document dated 25 July 2017, the Acceptance Condition as set out in the Offer Document has been waived down from 90 per cent. to 50 per cent. plus one ASA Share and all other remaining conditions to the Offer have now either been satisfied or waived. As at 1.00 p.m. (London time) on 20 November 2017, RPI owned or had received valid acceptances of the Offer in respect of 895,951,548 ASA Shares, representing 52.94 per cent. of the total issued ASA Shares, which RPI may count towards the Acceptance Condition.
dara44
20 Nov 2017
Re: Has everyone given up on this? Thank you for this and nice to see a few posts. I suppose my main concern is that the offer period keeps getting extended until they get want they want.
HPC Follower
20 Nov 2017
Re: How does this end? The report here from the Administrators is well worth a read... although I suspect getting the money back from those charged, based in Hong Kong, looks to be a challenge:[link]
HPC Follower
20 Nov 2017
Re: How does this end? They are not having my shares at that very low offer price, with the market value of ASA only depressed through very dodgy, unauthorised activity. I have rejected the offer now multiple times and will continue to do so despite the threats that such an offer may not stay on the table.Meanwhile the business continues at the working level and, should the foundry be completed and be put into production, should deliver enough revenues to put ASA back on a much betted financial footing - more so if they can also get the money taken back. The other gold, etc. businesses should also still be bringing in significant revenues.I am happy to see the protection through "administration" for as long as this takes; even if it means the corporate directors of ASA are limited now in what they can say or do except through the Administrators and, I suspect, the police, to help resolve matters.
AlphaCentauri
20 Nov 2017
Re: Has everyone given up on this? It is a clever trick. Steal money from the company; depress the share price; buy it back with the money you stole in the first place! Nothing will happen while the company remains in administration which will probably last until alleged criminal activities have been sorted out. Any unhappy shareholder can, of course write to the Administrators directly. More frequent discussion on the free BB at ADVFN.
dara44
19 Nov 2017
Has everyone given up on this? I'm not accepting the offer for what its worth, but there doesn't seem to be more resistance or even any communication by Mwana - the offer feels so undervalued and going to pick this up so cheap!
