Northam take over by Impala

[Lucy_1]

The department of minerals and energy (DME) has given its stamp of approval to the proposed acquisition of MVELA RESOURCES (MVELA) and NORTHAM PLATINUM (NORTHAM) by IMPALA PLATINUM (IMPLATS). Does this mean I will lose all the shares I have in Northam if I do not sell it now?

[Shard]

No you wont, in a normal market a take over of a company you hold shares in is generally a good thing, as another company sees greater value in it than its current share price be it strategic or intrinsic. You could get anything from a premium on your shares to equivalent value of shares in teh company taking over. All depends on how the takeover is structured really.

[Shard]

To give an example from yesterday, Porsche offered to buyout VW at 100% more than current share price. 100% return in one day is nice to say teh least. Another one was Xstrata on Lonmin, offered 50% more than current share price.

[Lucy_1]

Thank you for the response. Does this mean I should keep an eye out on the SENS announcements or will they let shareholders know what they offer per share? Sorry I am new at this...

[asylum]

and today VW is up another 62%

[asylum]

and that surely must have squeezed the nuts out of the shorts.

[og]

Well even when the market was bullish the takeover of SUHL by Simeka was not profitable for me as a shareholder - I was allocated 1 share of Simeka for every 2.1 shares of SUHL held and have lost over 40% of my money just after the allocation - losses are now much higher even though my trading account reflects Simeka as breaking even no matter what the share price is - I wonder how this transaction will be reflected in my income tax report...