NKP - Nkwe Platinum

[greggles]

Zijin Mining Group Co., Ltd. have made a take over bid for Nkwe Platinum at 8c a share. It closed at 3c yesterday so the announcement sent traders into a frenzy and it closed at 7.2c, up 140%.

Nkwe Platinum relisted in November last year and have traded at a discount to today's proposed take over price since then. For those who bought in over the last couple of months the take over bid is good news. Not so sure about long term holders though.

As set out in the announcement, Zijin Mining Group have a number of pre-conditions before making a binding offer:

• review of the current Life of Mine Plan for the Garatouw Project (LoM Plan);
• review of the corporate financial model for NKP based on the current LoM Plan;
• completion of limited satisfactory commercial, legal, tax and accounting due diligence on NKP;
• final approval of the Zijin Board of Directors; and
• execution of a definitive agreement giving effect to the Proposal, on customary terms and conditions for a transaction of this nature and in a form acceptable to Zijin.

So it sounds like it might be a while before this deal closes, if it fact it actually does.

 

[greggles]

Nkwe Platinum to be acquired by its largest shareholder Zijin Mining Group Co. Limited at 10c a share, a 25% increase on the 8c originally proposed by Zijn back in March. The acquisition will be via an amalgamation under Bermuda law and NKP's Independent Directors have unanimously recommended that shareholders vote in favour of the amalgamation in the absence of a superior proposal.

NKP is up 33.86% to 9.3c this morning.

 

[jbocker]

I will stay with the 25% minority holders, and hold out. I believe the resources are worth a lot more. It is still an interesting fight. Are you familiar with the group representing the minority?

 

[greggles]

I will stay with the 25% minority holders, and hold out. I believe the resources are worth a lot more. It is still an interesting fight. Are you familiar with the group representing the minority?

No, I'm not familiar with them. Where are they organising? Do they have a Facebook page/group?

I think that now the NKP directors have recommended that shareholders vote in favour of the amalgamation they probably have an uphill battle on their hands.

 

[sptrawler]

Jeez are Nkwe still going, my B.I.L lost his shirt on them, years ago.

 

[jbocker]

No, I'm not familiar with them. Where are they organising? Do they have a Facebook page/group?

I think that now the NKP directors have recommended that shareholders vote in favour of the amalgamation they probably have an uphill battle on their hands.

Send an email to Xuan
(I have deleted Xuans email address as it is probably not appropriate for me publish it without consent)
I am sure he will update you. A very well organised group on behalf of minority shareholders and some very interesting observations of the latest offer.
Send me a message if you want my email and I can forward the latest.

 

[jbocker]

Another announcement about Bidco is still thinking about the amalgamation. Not sure if it will proceed. Blah blah. Is this a ploy trying to freak out the dissenting shareholders.
Adds to the volatlility in pricing. I am having fun with buys and sells in another account, while waiting for the outcome of my tranche held as a dissenting shareholder.

 

[jbocker]

My ASF January Competition Pick
Will Bidco make news of the amalgamation this month and pay out the 10c per share to shareholders. Any news along these lines will give a kick in price.
Probably a few months too early for the competition pick. Dissenting shareholders still waiting a better offer.

 

[jbocker]

Read previous post. Picking again for February tipping comp.
Time for Bidco to get off the pot. They need to realise that the dissenting minority voters aint going away.

 

[jbocker]

Amalgamation Update - Chinese regulatory approval from the State Administration of Foreign Exchange ("SAFE") to transfer funds/establish the Exchange Fund Approval received by Gold Mountains (Bidco).

Well is this some of the big news we have been waiting for? A couple of more approvals and I would guess the 10c will be paid initially to all shareholders.
https://www.asx.com.au/asxpdf/20190206/pdf/442dkzh6gy4g9l.pdf

Unless there is more stalling to have the dissenting vote change their minds (good luck with that).

 

[Smurf1976]

Haven't followed this company, only came across this thread, but looking at the chart it seems that the market doesn't have too much confidence that shareholders are actually going to get their 10 cents?

 

[jbocker]

Haven't followed this company, only came across this thread, but looking at the chart it seems that the market doesn't have too much confidence that shareholders are actually going to get their 10 cents?

Yes this has been going a while if the deal goes through Bidco/Zijin will get a bargain. The dissenting voters have asked for better value. Time has eroded the patience and therefore the pricing and I daresay some non dissenters have sold out, which is natural enough. I think that the stalling by Bidco/Zijin amalgamation is a tactic to get the dissenters to fold.
Their last announcement is pretty significant and I think a good indication that they are still working towards an amalgamation. But who knows!?

 

[jbocker]

Haven't followed this company, only came across this thread, but looking at the chart it seems that the market doesn't have too much confidence that shareholders are actually going to get their 10 cents?

The believers have returned. Praise the believers.
I have just for the moment slung to the top of the monthly comp. A short dance in the sun.

 

[jbocker]

The amalgamation is set to proceed, at long last The 10c payout it will go ahead. The dissenters case will follow shortly.
https://www.asx.com.au/asxpdf/20190311/pdf/443cb270zsyjhy.pdf

 

[System]

On March 21st, 2019, Nkwe Platinum Limited (NKP) was removed from the ASX's Official List in accordance with Listing Rule 17.11, following implementation of the amalgamation between NKP and its shareholders in connection with the acquisition of all the issued capital in NKP by Gold Mountains (Bermuda) Investment Limited under Bermuda Law.

 

[jbocker]

This story hasn't finished yet.
Dissenting shareholders have a court action in place for fair value share payout.
The behaviour of Chinese corporate takeover and shareholder treatment is on display. Currently they are withholding their 10c pay out to the dissenters.
It is thought that they will float in South Africa on their share market. The total value of the asset will be interesting for this IPO compared with the value they paid out on.