MGX - Mount Gibson Iron
- Thread starter The Barbarian Investor
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- mgx mount gibson iron
Aye laddie, you seem to be the only one who actually read the announcement properly.
Guys, please read these kind of releases very carefully before jumping to conclusions. A major transaction IN THE COMPANY is hardly in the same ballpark as making a consolidated bid for a separate entity.
The line that says MGX "was made aware of a potential transaction" suggests to me that MGX were not notified or informed of this development. Imo, the chances are that Apac and/or Gazmetal have substansially increased their interest (JV?..who knows?...) in MGX. I have been highly suspicious of the Chinese interest in iron ore all along, and have always claimed that they will attempt to gain a level of interest to exert a disproportionate level of control on iron ore prices.
jman
Hey haemitite,
I guess I should have worded it more precisely,what I meant was; I don't believe the Chinese will be happy to remain as the poor second cousins in the whole scheme of things, ie happily continue buying iron ore at ever increasing prices. Imo these Chinese companies will try and strategically position themselves in the sector in areas where they will certainly have an influence. And what better place is there than as a major shareholder in an emerging company like MGX?
Looks like chansw may have confirmed this just now, can we please clairfy this "takeover" comment in chansw's post? I assume it has something to do with the shares trading hands.
jman
It is not my comment as that is from ABC 7:00pm news on TV in Perth. They mentioned about any shareholder over 19.9% triggers a takeover. Can someone confirm this, please? According to the reporter, APAC bought the Gazmetall share holding in MGX and now sitting on 40%. Anyone from Perth watched the ABC News tonight?
huh, i must be missing out... is it compulsory for the chinese to make that take ouver if they sold 40%?
i hold mgx.
i hold mgx.
ABC news (Perth) just mentioned Gazmetall (Russian) sold their shares to APAC (Chinese). Now the Chinese group has about 40% and they have to make a takeover offer.
This is to correct what I wrote before. When the share holding is over 19.9%, it triggers the announcement of takeover intention. That means they don't have to make a takeover but they need to announce their takeover intention.
Unless its the creep provision
And 20% ain't creep
Lets hope it isn't a lowball bid
I have to type 100 characters so my guess is 3.20
Unless its the creep provision
And 20% ain't creep
Lets hope it isn't a lowball bid
I have to type 100 characters so my guess is 3.20
Sorry, haemitite. I think APAC only needs to make an annoucement of takeover intention and not necessary a takeover offer. Based on Aspect Huntley earning forecast for Jun 09, it is 33.1 cents per cent and $3.2 is PE 9.67. If the iron ore price is going to have a 30%+ increase this year and the outlook is still strong until at least 2010 (which a lot of experts said that before), do you think MGX can be traded at a higher PE? Would that be better MGX not to be taken over at this stage as its production and cashflow are soaring. What do others think about this?
It depends on what the board recommends to the shareholders if they accept the offer it will be a friendly takeover if not then expect a hostile reaction from the Chinese interesting thou if the 40% is correct they would have at least 2 if not 3 of their members on the MGX board interesting day ahead
cheers laurie
cheers laurie
how about MGX's neighbours? who are the biggies that is in close proximity to MGX's mines? a fren holding MGX was making a wild guess that ZFX could be a candidate since their AGM take over fell thru ( or not)... not following the ZFX-AGM saga.
chart wise- RSI picking up & first time convincely above the 10 day MA.
chart wise- RSI picking up & first time convincely above the 10 day MA.
If there is a takeover from APAC, I don't think their representatives on the board can be involved in the decision of the takeover as there is a conflict of interest. Like SDL and GBG merge talk last year, George Jones, the Chairman of both companies was not involved. When Mount Gibson took over Aztec, there was a stage when the shareholding of Aztec from Mount Gibson passed over 50% and Mount Gibson mentioned they could control the board once that passed 50%. If what ABC news reported was correct, I am hoping the share price will move up significantly today when MGX resumes trading before they can get to 50% or even offer a takeover.
Could you remember the part talking about the iron ore companies? I hope I did not hear the wrong thing and that is why I want someone from Perth who watched the news to confirm.
MGX announcement out this morning,
MGX will be reviewing the transasction and will intend to act in the best interest of all holders, including minority holders. The transaction will be subject to review by the Commonwealth Foreign Investment Review Board. A substansial shareholder notice has already been lodged with ASX.
Guys does this actually require shareholder approval at all?
jman
MGX will be reviewing the transasction and will intend to act in the best interest of all holders, including minority holders. The transaction will be subject to review by the Commonwealth Foreign Investment Review Board. A substansial shareholder notice has already been lodged with ASX.
Guys does this actually require shareholder approval at all?
jman
I'm at a loss why our market is down when the DOW is up and as for MGX well for the life of me cannot understand it being in the red if anyone can shed light on the subject please do as I have given up trying to work our market out
cheers laurie
and as for MGX well for the life of me cannot understand it being in the red if anyone can shed light on the subject please do as I have given up trying to work our market out cheers laurie
The Dow was down 37 odd points at the close.
MGX no certainty of anything here, Shougang is declaring its holding as being a seperate company so no requirement to move to takeover as they have not crossed the threshold.
All very muddy and will take time to sort out.
Why is it down, who knows not a rational market at the moment, fear rules, and in uncertain times uncertainty in a company leads to a share price fall.
Hopefully once everyone fully understands what is occurring we will see some price action, until then nothing is certain.
MGX no certainty of anything here, Shougang is declaring its holding as being a seperate company so no requirement to move to takeover as they have not crossed the threshold.
All very muddy and will take time to sort out.
Why is it down, who knows not a rational market at the moment, fear rules, and in uncertain times uncertainty in a company leads to a share price fall.
Hopefully once everyone fully understands what is occurring we will see some price action, until then nothing is certain.
Reviewing the conditions of the share sale, quickly I may add, it would appear that one of the conditions is that the takeover board etc give permission for the go ahead to takeover.
So without a full read and understanding the chances of progressing to takeover would appear good.
Very muddy.
So without a full read and understanding the chances of progressing to takeover would appear good.
Very muddy.
