Bad deal

[platau]

I fail to understand the "good value" from Heaven Sent. Tau Lekoa on it's own was worth R1bn a year or so ago. Lesego must have value. Market cap of deal at R12.25 is R0.6bn Thsi deal ONLY benefits Dippenaar and Swanepoel with their free shares - not shareholders who bought with hard earned money.... Pathetic value destruction

[SimonPB]

gold miner, what did you expect ?

[Gof]

It seems like a bad deal for the seller, although look at some of the mines that Village bought which seemed like a bad deal for the seller at the time but turned out to be disasters for Village!

[platau]

Blyvoor was a disaster, Buffels was always going to close. Tau Lekoa, not bad at all - decent mine with a decent lifespan and good profits.Problem is to try and replicate the "Harmony Way" in Village. Should have developed the Village way!! Should have followed Rob Still who sold at R2.17 before share consolidation (R43 after) How can R12.25 be good for essentially the same asset?? We should all go to SHM and block the deal. Reckless management

[platau]

Careful.... I'm also a gold miner - but not a reckless one.... Clearly I was a bit reckless believing in this one base on ZB's track record

[Gof]

I agree but I'm sure the share price will tank if the deal gets blocked. Based on the fact that all the non-performing assets have been removed, it shouldn't take more than a few years to make the cash to pay for the deal!?

[maq]

I agree. This deal should be stopped. If village starts paying a dividend regularly from Tau, the share price will definitely improve and in a few years time, i am sure we will have received at least half the current share price, in dividends, and still hold the asset.

[Gof]

It looks like Continental Coal has been reinstated to the ASX. Do you think Village will pay a dividend when they sell their shares, or will this be tied up into the deal with Heaven Sent?

[maq]

Why is Peregrine Equities buying into the company, knowing that it will be delisted after it is sold.

[SimonPB]

coz you can buy at 1080c and exit at 1225c .. easy profit

[maq]

Thanks for the answer Simon. But one question, why are not the other asset managers also buying in,to make a profit of 13% over a period of 4 months. I mean, as you said, it is a definite 1.45 profit per share over a short period.

[SimonPB]

you never see everybody buying/selling the same thing .. different ideas, strategies, time lines, risk profiles etc.

[platau]

Peregrine do lots of day trading.... Quick buck - not a long term view