SXP - SAPEX Limited

[blehgg]

Hi Dukey or Grace (or anyone else that can help)
I noticed on etrade that there is something on Sapex that i don't understand.
BUYERS SELLERS
1 @ .88 3 @ .70
1 @ .82 1 @ .71
1 @ .80 1 @ .715
1 @ .77 1 @ .76
6 @ .75 1 @ .77
3 @ .74 1 @ .83
3 @ .735 1 @ 1.10
1 @ .72
1 @ .705
9 @ .70

The share price closed at .695
So why are the top 9 buyers willing to pay more than the top seller?
Shouldn't the seller want to sell more than what the buyer is asking?
I hope it all makes sense?
Thanks guys.

Gives you priority over the other buyers for one.

The volume traded determines the median buy price ~ so just because they put the buy price at 88c doesn't mean thats the trade price.

If your using comsec, u can usually tell the trade price by the pre-open indicative price.

 

[cfollett]

90cps sounds pretty good - but then sxp could have humungous resources in arckaringa.....

question .... what happens to my SXPO ? I presume they would be treated much the same as SXP shares - minus the exercise price??

I have no experience of t/o or merger situation with outstanding company issued options?

Looks like the offer is 72c for heads 50c for options.. I was hoping for a bit higher.

The options had about 4 years left on them so wishing they were a bit higher.

Can take either LNC shares, cash, or 50-50.

 

[nevieboy]

Gives you priority over the other buyers for one.

The volume traded determines the median buy price ~ so just because they put the buy price at 88c doesn't mean thats the trade price.

If your using comsec, u can usually tell the trade price by the pre-open indicative price.

Thanks blehgg for clearing that up for me.
So the offer is .72c per share. If not in for the long term, and the share price rises way above the offer price is it worth to sell it and move on?
Just a thought.
Thanks

 

[grace]

Thanks blehgg for clearing that up for me.
So the offer is .72c per share. If not in for the long term, and the share price rises way above the offer price is it worth to sell it and move on?
Just a thought.
Thanks

I disclose holding both LNC and SXP, and I personally think the deal is good for LNC, and the share price movement in LNC would support this.

An offer of $104million for SXP......they are high risk, but they have plenty of plays that could be company makers, and a whole basin to come up with something (they already have a couple of billion tonne of low grade coal). Plenty of studies have identified similar coal in parts of their basin to the Surat and Bowen Basins (and we all know what's happening there!).

The strange thing is that to take LNC shares, holders have to wait until the VWAP 5 days prior to the shareholder meeting (should be August) to determine just how many LNC shares one gets. This means we have LNC's commissioning this month to have an impact on the share price. Will that be up or down? I guess if it is successful, one would think SXP holders will then get less LNC shares than they could in fact buy on market today.......

Do you sell, or hold for perhaps a higher bid from another party, or take the LNC shares in a couple of months? SXP is up for $1million break fee if another party make a deal, but in the scheme of things, that's probably not much.

These are the questions running through my brain at present.

 

[Dukey]

Mmmmm - personally I think SXP have under sold themselves. They have 65000 km² !!! and although the resources are not JORC'ed - there has been enough historical drilling to KNOW there is alot of coal there.
Media reports suggested $150M and that would have been fairer I think.
Some of the SXP tenements surround those of GLX who claim around 1.4B tonnes. I believe SXP would eventually be aiming much much higher. Add to that - potential for coventional oil, and gas, diggable coal, and regualar CSG..... if LNC get SXP for $104m Mill - they are laughing.

... I'm not.

Add to this that LNC s.p. has charged so hard recently - it may well be due for correction (though a successful pilot might help it to continue upwards... ?)
Basically ... I'd much rather SXP had held them off for a year - till they had some resources confirmed and LNC had their pilot up and running....

I know why LNC want to eat them up now... because in a year from now, they would have to pay much much more...

Grrrrrrrrrrrr - ripped OFF!!

-all just my I guess
-dukey

 

[Dukey]

Gawwwwd - just checked SXP's presentation from March - inferred resources target 5.6B tonnes !!!

Not sure about the area around GLX now - can't find where I saw that info - maybe I'm getting confused!?? anyone remember anything about that?

But still - I cannot for the life of me understand why SXP has accepted this deal so quickly. Why sell out just before paydirt??

-dukey.

 

[grace]

Gawwwwd - just checked SXP's presentation from March - inferred resources target 5.6B tonnes !!!

Not sure about the area around GLX now - can't find where I saw that info - maybe I'm getting confused!?? anyone remember anything about that?

But still - I cannot for the life of me understand why SXP has accepted this deal so quickly. Why sell out just before paydirt??

-dukey.

Dukey, I think we can see the difference in the strength of management here. Andrew ??? of Sapex (the founder and MD) is ex-SA govt (petroleum division). He took up the leases then floated as I recall. I read his background, and wasn't all that impressed. Perhaps he was only in it to flog it off. He has been a long time getting around to setting up for drilling for oil. Linc, in my opinion, seem to have very good management, and took the opportunity to move on SXP, before anyone else.

The other night (pre Linc's approach) I spent some 3 hours studying Sapex's holdings, including many reports written about the coal depths, ages etc. They have plenty of coal at the right depth for CSM. Just one quote from my research:-

"Extensive and thick Permian coal measures occur in the intracratonic Archaringa basin. These deposits are similar in age to proven eastern Australian CSM producing basins (ie. Bowen and Surat basins)."

If the basin is really that prospective, Linc won't be the only ones running their eye over it!

 

[Dukey]

Dukey, I think we can see the difference in the strength of management here. Andrew ??? of Sapex (the founder and MD) is ex-SA govt (petroleum division). He took up the leases then floated as I recall. I read his background, and wasn't all that impressed. Perhaps he was only in it to flog it off. He has been a long time getting around to setting up for drilling for oil. Linc, in my opinion, seem to have very good management, and took the opportunity to move on SXP, before anyone else.

The other night (pre Linc's approach) I spent some 3 hours studying Sapex's holdings, including many reports written about the coal depths, ages etc. They have plenty of coal at the right depth for CSM. Just one quote from my research:-

If the basin is really that prospective, Linc won't be the only ones running their eye over it!

I agree - but I wonder if the deal has been done in such a way as to make it difficult for others to jump in. Will have to have a closer look.... but thinking about the $1M penalty for dropping out - it will be chicken feed if a better offer comes along, and surely SXP would have allowed for that possibility.

... here's hoping.
I have no problems with LNC/SXP joining - it makes sense - but as an sxpo holder I think it's worth more.... but maybe I'm biased ..... not maybe - definitely!

--- interesting side note: why was the trading halt announced as 'merger talks' - when it is more like a friendly 'takeover'. - or is there no diff.?

 

[Markcoinoz]

Well,

I am not impressed at all.

Sapex Objective

To be a significant energy producer through exploration, discovery and development of oil and coal seam gas in the under-explored Permian sediments of the Arckaringa Basin and also evaluate the commercial potential of the large coal resources in that basin.


Blah!! Blah!!

Considering Andrew had been CEO of Mines & Energy Sth Aus. and knew the value of the Arkaringa Basin Tenements 65,000sq/klm, why did he do a sudden backflip?

I invested in them last year and waited patiently expecting this company to turn out to be a major in a few years to come.

Well, Andrew and the boys figured that they could make a nice tidy sum now rather than do the hard yards and bring shareholder value.

Good one Andrew.

Your objective appears to be selling prime real estate for a song at the shareholder's expense.

Even that you appear to be lacking.

I have sold out!!!!

Wouldn't touch any other company he is involved in with a 10 foot pole.

Cheers markcoinoz

 

[nevieboy]

Hi all,
Might be a silly question but here goes anyway.
If I understood the announcement correctly that Linc are going to pay .72c per share cash consideration.
Does that mean they will send me a cheque sometime after the merger for
.72c per share for every share I hold or will I receive the equivalent amount of Linc shares?
So theoretically speaking Sapex shares will never trade above .72c unless someone decides to buy into them without reading the previous announcements?
Have I misunderstood the announcement?

 

[grace]

Hi all,
Might be a silly question but here goes anyway.
If I understood the announcement correctly that Linc are going to pay .72c per share cash consideration.
Does that mean they will send me a cheque sometime after the merger for
.72c per share for every share I hold or will I receive the equivalent amount of Linc shares?
So theoretically speaking Sapex shares will never trade above .72c unless someone decides to buy into them without reading the previous announcements?
Have I misunderstood the announcement?

As I understand it, Linc will give you 72c, or half cash and half LNC script, or all script (whichever box you tick). The shareholder meeting will not be until August I think (to approve the scheme), and to determine how many LNC shares SXP holders will get will be the VWAP 5 days prior to the meeting.

You will get more than 72c if another party makes a higher bid. What is the likelihood of that? SXP have to pay a break fee of $1mill, and can not approach another party. LNC already own 5% of SXP, and one would assume they are buying on market at present, as it is less than the 72c they will have to pay, come a few months time. The more LNC buys, the more difficult it becomes for someone else to takeover. Now they have no limit to how many they can buy on market as they have announced the merger to market.

I sold out today, taking a risk that I will lose out if there is a higher bid. Watch the bid come in next Monday...

Also, the scheme needs shareholder approval (check 50%??). However, given it has board approval, that must account for quite a bit, including the ESG directors etc.

 

[In-consistant]

As I understand it, Linc will give you 72c, or half cash and half LNC script, or all script (whichever box you tick). The shareholder meeting will not be until August I think (to approve the scheme), and to determine how many LNC shares SXP holders will get will be the VWAP 5 days prior to the meeting.

You will get more than 72c if another party makes a higher bid. What is the likelihood of that? SXP have to pay a break fee of $1mill, and can not approach another party. LNC already own 5% of SXP, and one would assume they are buying on market at present, as it is less than the 72c they will have to pay, come a few months time. The more LNC buys, the more difficult it becomes for someone else to takeover. Now they have no limit to how many they can buy on market as they have announced the merger to market.

I sold out today, taking a risk that I will lose out if there is a higher bid. Watch the bid come in next Monday...

Also, the scheme needs shareholder approval (check 50%??). However, given it has board approval, that must account for quite a bit, including the ESG directors etc.

Put all three together & you have one umungest company. Owning three quarters of S.A Mining Revenue in years to come & starting @ these, up to date times.

If only the Government would pull its finger out. And relise the potential we have and the things we can do the elimunate the up trend prices of fuel and the Americans of course. Got to keep it all to our selfs, and not sell it out like Canberra's unique uraniun farm in the sevent'ys.

I got me money on Sapex to hold. Took a sticky beck in the Sapex landing zone the other week, all I saw was magical lights, be-wilded noises and ufos taking off.

"Takes one to know one"

 

[In-consistant]

What does it mean to put the brakes On! When market Cap is at 47,931,310 and rising buy the Ten's of thousands a week, P/E ratio is of -417,39 back up gearing. Comparason agianst the Energy sector, exceeding with bliss. Volume has doubled its highest average. In its stages, considering survey results and resources are true.

Linc prefides a merger, Sapex solutes the proposal and the proposal goes ahead. Do we see a operation go ahead for Australia's largest natural enviromentaly friendly mining experdition. Or a funny farm fit for a drongo.

I believe its put 2&2 together and let the minning experdition begin. If there resuts and mesurments ar as good as claimed, you would exspect Interest to rise in the coming weeks. Compounding immaculant success in the future. For the times to come.

Sitting on 71.5 awaiting Adjustments.

 

[grace]

Hi all,
Might be a silly question but here goes anyway.
If I understood the announcement correctly that Linc are going to pay .72c per share cash consideration.
Does that mean they will send me a cheque sometime after the merger for
.72c per share for every share I hold or will I receive the equivalent amount of Linc shares?
So theoretically speaking Sapex shares will never trade above .72c unless someone decides to buy into them without reading the previous announcements?
Have I misunderstood the announcement?

See my post above, but also, I hold plenty of LNC and ESG already, so should LNC be successful, I will enjoy the upside to SXP via LNC. ESG farming into SXP acreage for CSG so will enjoy some upside there too from SXP should it eventuate. I might add that I took my money as the market is in correction mode, and I am hoping to pick up something else at a discount.

You need to consider your tax situation as well in relation to holding or selling, and of course any higher bid from other parties as previously mentioned.

 

[nevieboy]

Hi Grace,
What I ment was not a third party buying sxp, but share traders (like ourselves) buying into sxp.
That's what makes me think why the share price will not go over .72c
Hope I'm making sense.

 

[grace]

Hi Grace,
What I ment was not a third party buying sxp, but share traders (like ourselves) buying into sxp.
That's what makes me think why the share price will not go over .72c
Hope I'm making sense.

Well, you and I wouldn't be buying over 72cents. Market obviously not confident that another offer will come in. Probably will now that I have sold....

 

[nevieboy]

Well, you and I wouldn't be buying over 72cents. Market obviously not confident that another offer will come in. Probably will now that I have sold....

Hi Grace,
Yeah I decided to sell sxp today. Had them for just over a month and with a 43% gain I decided to sell. Sapex has done it's job for me.
Now it's time to move on to some other stock to add to my portfolio.
Thanks for your replies.
Happy trading.

 

[In-consistant]

I can't believe this, SXP was doing so well without having the interferance of LNC, I might as well sell, -its gone to ruines. It had serious momentum, with MACD average was well above the going rate of sky's the limit. Im totaly discussed that LNC had gate crashed the party. I saw and felt enormass charting potential for SXP, provided it was taken seriously.

I'll have to take this one on the chin, and think of the positives if there is any. I must say I don't quite understand, how a merger with LNC's, could be so fatal to SXP's performance and why it would name SXP overbrought. Not quite sure on whats going on, and what it all means but the buck stops here for now.

 

[In-consistant]

I can't believe this, SXP was doing so well without having the interferance of LNC, I might as well sell, -its gone to ruines. It had serious momentum, with MACD average was well above the going rate of sky's the limit. Im totaly discussed that LNC had gate crashed the party. I saw and felt enormass charting potential for SXP, provided it was taken seriously.

I'll have to take this one on the chin, and think of the positives if there is any. I must say I don't quite understand, how a merger with LNC's, could be so fatal to SXP's performance and why it would name SXP overbrought. Not quite sure on whats going on, and what it all means but the buck stops here for now.

Unreal 15 days later and you have won the stunner deal.
looks like Linc's have hit it with a steam rooler and its compacted into nothin.

Time to email Andrew with sum concerning questions?

 

[Dukey]

Re: merger with LNC. I had decided to hang on to my options for a bit to see if another party turned up. Nothing much happening, and was getting close to cashing in - but last week there was an interesting development.... though I'm not sure if it's really significant.

27 June announcement - MM&E Capital - becoming substantial holders of SXP after buying up 5.3% of SXP shares from the 12th June.

So now I'm wondering... why would they do this now, unless they think there is a chance of another bidder for SXP turning up?? I mean if they want LNC - they could just buy it now at $3.70 = to the recent funding deal.

What do people think - do MM&E have an inkling of something we don't know about? ... or are they just taking a punt?

- dukey.

EDIT: interestingly one of MM&E's funds is called the Takeover target fund! (see bottom of this link)
http://www.mmecapital.com.au/content.asp?nodeid=3