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Another one bites the dust!

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Super Contributor
Interesting news re PAM. It seems the big miners can't get rid of their SAfican assets fast enough. In this case they are in position where they need to give away a quarter of the company to the masses anyway. They then have to invest in the mine in the face of the Malema mob - so getting rid of the thing is the best option.
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Ja, but who is going to buy it? I mean, you will be taking the stock off their hands - and you will have to dilute to meet the BEE criteria, and you will have to pump in significant capital to extend the life of mine. Without a big miner behind them, I am not so sure about the investment case for PAM. Worse than that, if they are ditching their stock on the open market - that will translate to massive supply and we should see quite a big drop in the share price accordingly
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Super Contributor
Probably a chinese buyer that can deal with this local crowd. BUT yes, I agree. Certainly not the time to be buying. They may even have offloaded at a big discount to the market price. We had this discussion before. Interesting company but needs vast investment in a shocking political environment and - possibly - at a local market top.
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Regular Contributor
Could we see Cyril or Tokyo buying it?
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Super Contributor
Not unless it is with a proactive partner (with deep pockets.) Then they will go along for the ride. They won't develop the asset themselves.
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And I also doubt that they would do it on the open market - they have the ability to negotiate that type of deal behind closed doors, and it would have been announced as a BEE transaction. No, I recon they haven't been able to find a buyer, and are now trying to offload on the open market - hoping a bunch of institutions will pick it up.
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