FLX - Felix Resources

[Quillan]

It would appear that the takeover terms make acceptances by the Directors and those party to it, irrevocable. But Flannery is a shrewd cookie. He knows that the Authorities have to approve it, and if counterbids arrive, they may say that in the interests of National and Port security, these bids must be given a fair airing.
If one of them is acceptable to the Shareholders excluding the Directors' group, then the Directors must recommend it.
What odds they have been given the nod and wink already, which enabled them to commit to the deal?
This no doubt explains why the press commentators don't think this is a done deal, and that we might see $24 as a possible final price.
The Authorities are obviously sensitive to Chinese Companies coming in and buying up chunks of the National Assets, and now perhaps fancy giving China a bloody nose after the way they behaved in the Rio saga.
A pity the likes of Xstrata and Vale could not have seriously entered the fray earlier?
I would rather be talking to Rio, or London than Beijing, with my subsequent shareholding.

 

[noirua]

If comments in Business Spectator can be believed, a counter-bid may have already been made to the Board of Directors of Felix Resources. As they say though, rumours swirl as to a rival having made a bid.

Hopefully, my view, there may be several bids on the table by the start of trading next Monday. It could be that the share suspension may be in place for quite a while.

 

[noirua]

Bloomberg have just reported that Yanzhou Coal Company has stated that they expect their shares to remain suspended for up to 30 days for asset restructuring.
No word from Felix (Probably fast asleep with the rest of Australia) as to whether their shares will also be suspended.
No word as to whether Felix Resources will confirm that they have been approached by another rival bidder.

 

[noirua]

It's been reported that AMCI 19.12% shareholder in Felix Resources is fairly highly leveraged and needs to sell its stake in Felix Resources. Report that talk within the industry is that bankers have instructed them to repay debts.

http://business.watoday.com.au/busi...field-exercise-the-tongues-20090811-eh00.html

 

[Quillan]

Noirua. I think your interpretation of the comment in Business Spectator was misread.I believe they appear to be referring only to the existing bid, and not another suitor.Note, it was dated 11 August.It reads like they are behind the curve, and late in reporting the deal.

 

[berbouy]

just noticed there is an announcement on the asx site posted about 20 mins ago , that may be worth a read for the holders of flx- not a holder myself, but noticed from this thread that there is a bit of interest in takeover- good luck to you all that hold-berbouy

 

[zaz]

Summary of the offer:

http://longterm.blogspot.com/2009/08/felix-resource-flx-flxax-yanzhou-yzc.html

.......this is a barely adequate offer. Yanzhou are paying a small premium based on FLX recent closing price and are securing a good 75% plus upside over the next few years. Felix major shareholders are getting the opportunity to sell out together preventing the kind of debacle that happened with Macarthur Coal (where one shareholder sells a blocking stake).

Importantly the door is wide open for a serious better offer. There is plenty of time for one to materialize which gives FLX shareholders something of a floor. An offer nearer $24, would leave a reasonable 25% upside to the acquirer while paying a more reasonable price to current FLX holders.

 

[gfresh]

Tight **** Chinese! (as per usual). Not that small shareholders will have much of a say at the end of the day.

Who thinks it will open at $16.95 tomorrow? not me Will be an interesting day..

This bit is important:

Under the SIA, Felix has agreed to the following exclusivity arrangements until implementation (or termination) of the Scheme:
a) (No shop restriction) it will not solicit or encourage Competing Proposals;
b) (No talk restriction) it will not negotiate or enter into discussions with any Third Party in relation to a Competing Proposal; and
c) (No due diligence) it will not provide any due diligence information for the purposes of enabling a Third Party to make a Competing Proposal.

The 'no talk' and 'no due diligence' restrictions will not apply to a Competing Proposal that is not solicited in breach of the SIA and that the Felix Board determines, in accordance with its fiduciary or statutory duties, to be a Superior Proposal.

Felix is also required to notify Yanzhou of the details of any approaches made to Felix that may potentially lead to a Competing Proposal. If Felix receives a Superior Proposal, Felix's Board must provide Yanzhou with a 5 Business Day period within which Yanzhou can put forward a counterproposal. If Felix's Board decides that such counterproposal produces a superior outcome for the Felix shareholders than the Competing Proposal, then the counterproposal will be implemented.

 

[3 veiws of a secret]

I have read this thread on of through the years and Noirua has reported well on Felix . Last nite I watched " Business Lateline " with the BHP chap typically coy about BHP is in the market for aquisitions.......I just don't want to crystal ball the situation,but I just wonder how many times BHP can play the white knight.
Never been a holder of this share ,as I ploughed my money into EXL (EXCEL ).....hope profits are around the corner for the few that hold. G'luck
(shall watch with anticipation 2morrow):bounce:corn:

 

[nomore4s]

As a shareholder I'm a little bit disappointed with the offer but it is probably a pretty fair offer condsidering the current economic climate. And seeing as I brought in at under $10 at the end of March I'm not too disappointed and the best thing now is there should be a floor around the $17.95 area ($17.45 after the 1st 50c d/e in late Oct).

I've got a feeling we won't see a better offer but I really hope I'm wrong, something over $20 would be nice

 

[noirua]

Mr Hans Mende is the Chairman of the AMCI Australian subsidiary and a Director of Felix Resources. AMCI holds 19.2% of Felix and Mr Mende holds stock in his own right.

It seems perfectly possible that knowing AMCI were looking to sell their holding that that may have been part of the reasoning for MD, Mr Brian Flannery being so conducive to companies wanting to buy Felix. That is to set the ball rolling for AMCI.

Mr Flannery also said the main holders would stay together on any bid situation and now it is increasingly obvious that it was about to fall apart.
The shock of the share price fall below $5 in January may also have been a factor.

As to bid price it does depend on the coal price and demand.

Felix are a dig it out and sell it coal miner, little else on the profits front. However, Felix have shown they are a very profitable company and Mr Flannery has said profits at Moolarben would be good even with benchmark thermal at US$60 per tonne (its around US$73 - US$75 at the moment with a bullish article from Merrill seeing US$80 per tonne next year).

Talk of $24 to $27 as the right price for Felix seem fair for this Coal-Growth-Tiger of Australia.

 

[3 veiws of a secret]

Has time been stated for FLX (Felix Resources) to come back onto the market i.e. time-wise????

 

[noirua]

"Felix Resources confirms takeover by Yanzhou Coal"- 14/8/2009
http://www.chinadaily.com.cn/china/2009-08/14/content_8570265.htm

Yanzhou Coal Company finished trading on Wall Street 7.3% up and were suspended limit up in Shanghai (+10%).
Felix Resources finished 3.5% up at $17.60 with 4,628,006 shares traded. Largest trade at 693,583 shares at $18.00.

Reject Inferior bid says Macquarie: http://www.chinadaily.com.cn/2009-08/14/content_8570265.htm

 

[Tranquility]

This might seem obvious to most of you on here... but what does the offer actually mean? I've never held shares in a company that's been taken over before, so I dont know...

Does a cash payment for each share mean that we are forced to sell our shares to the takeover company, or that they will be paying this amount to shareholders and letting us keep our shares?

Also, what is an in-specie distribution on shares?

 

[noirua]

This might seem obvious to most of you on here... but what does the offer actually mean? I've never held shares in a company that's been taken over before, so I dont know...

Does a cash payment for each share mean that we are forced to sell our shares to the takeover company, or that they will be paying this amount to shareholders and letting us keep our shares?

Also, what is an in-specie distribution on shares?

"Macquarie says Reject Inferior bid": http://bloomberg.com/apps/news?pid=newsarchive&sid=ag0Oyc9NeQ.0

Don't concern yourself with this starting bid that is just a shot over the bows. $24 or more is what we are looking for.

We are only forced to sell to the bidder if they obtain at least 90% acceptance for their offer.

"in-specie" means the shares of a company will be distributed and not sold for cash.

 

[Tranquility]

Ahh, I didn't know they had to obtain 90% acceptance. I will definitely hold out!

Thanks for your help Noirua

 

[zaz]

Ahh, I didn't know they had to obtain 90% acceptance. I will definitely hold out!

Thanks for your help Noirua

It's 90% for an on or off market offer. This is a scheme of CA. In which case I think you'll find that the 90% does not apply.

Even if the 90% does apply you could end up with a shareholding that is no longer traded on the ASX and with no dividends, i.e. a locked in minority investor, not a great position to be in.

You'll find more info on the FIDO website.

Neil
longterm.blogspot.com

 

[zaz]

"Felix Resources confirms takeover by Yanzhou Coal"- 14/8/2009
http://www.chinadaily.com.cn/china/2009-08/14/content_8570265.htm

Yanzhou Coal Company finished trading on Wall Street 7.3% up and were suspended limit up in Shanghai (+10%).
Felix Resources finished 3.5% up at $17.60 with 4,628,006 shares traded. Largest trade at 693,583 shares at $18.00.

Reject Inferior bid says Macquarie: http://www.chinadaily.com.cn/2009-08/14/content_8570265.htm

Can you believe that China Daily has taken down the article with the Macquarie recommendation! Go China!

 

[noirua]

Can you believe that China Daily has taken down the article with the Macquarie recommendation! Go China!

Try this link instead on Bloomberg: http://www.bloomberg.com.au/apps/news?pid=newsarchive&sid=ag0Oyc9NeQ.0

 

[Quillan]

With Flannery and Duncan worth around $A500 million each, they have little incentive to hold out for a fair price of $23-$25 as judged by Macquarie and others mining commentators.
Hang on in there private shareholders. If B.F was only worth say $5million he would still be fighting like hell for a fair price.
Analysts say that in 2 years the Felix arm will increase Yanzhou's earnings by as much as 37%.
If this is a fair estimate we are bing sold down the river by our Directors. Remember,Yanzhou is huge compared with Felix, so a 37% increase in their earnings is a massive gain. That tells me they could afford to pay $A24, because Felix is the prime coal asset in Australia with all the coming new fields in the share price for nothing.
We shall soon know. If B.F and his fellow Directors are right, no new offer will emerge, but in 2 year's time we will all be saying "they stole the Company from under our noses".