i dont know why everyone is getting excited about beige , now that the independant advisor has said the company is worth more than the offer? lion does not have to make an offer,they can just walk away and the share will go back to it's trading range...am i missing something? i know the share is under valued,i agree but so are many other shares....any thoughts?
Nobody is getting excited. This has been a dog for years. Lion has bought it's interest never mind "making an offer." The offer to minorities is a formality and is a legislative requirement. Lion will only raise her offer if she wants to take out the minorities immediately. She is required to raise her offer on BEGP to R1,60 which is the reason for the activity there. The share is cheap. I have cleared most of mine at a good profit and will look to take them back when (if) I get the chance but this time as as a long-term hold. I believe this share will perform very well in the long-term. The fact that the market has no interest only serves to pique mine.
There might be an opportuinity to make some money here. Buy on the rumour, sell on the fact. Ppl might buy at sub 12c thinking that they want to buy now in case Lion does up their offer. It will still be a while before Lion makes an announcement in this regard so BEG might drift up to around 11-12c. The 'expert' view is that the share is worth more than 50% of the Lion offer. My view on things ... risky trade!!!
The share is worth 11-12 cents but there is no way Lion will purchase at that price - capitalism rules - it is valued at 12 cents which is why they are offerring 8 cents - very unlikely if they would raise the offer - also note that the Take Over Panel was happy with the price of 8 cents for the main share.
The Panel expresses no opinion on the "Fairness of the price of an offer." That is not their function. They are concerned purely with the terms of the offer. The independant valuation performed by KPMG came in at around 13c. The board will recommend that the offer be rejected and is of the opinion that the offer is too low! If Lion wants this company, they will need to raise the offer. I suspect we are in for a reverse listing. I believe Lion will up this offer - BUT - that could be a while.
If I'm not mistaken, the Take Over Panel did say that the offer for the pref shares wasn't reasonable and that Lion had 5 days (ending today) to appeal this or to make another offer. Only the pref shares. BEG nicely added an 'expert valuation' in the SENS as well.
No. They ruled on the METHOD of establishing the value of the instrument which they held must be on a "see-through" basis. It must therefore be converted in terms of the price offered on the capital value of the normal shares adjusted for the difference in yield. Since they have a base value - they can calculate this. Had the value offered for the normal shares been different - so too would this figure have been different.
BUT that's what I said above. The argument now is about the BEGP shares. They are convertible within 3? odd years and need to be valued as common stock + present value of ther yield.; that is what the Takeover Regulation Panel ruled. They did not rule on the offer price per se. This falls outside their ambit. Thereafter - we will wait and see what happens - only Lion knows.