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Possible take-over?

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Contributor
I see the same character just bought another bunch of shares and now holds a huge percentage of the company. Does this put other shareholders like myself at risk or is it possibly a good thing? It would be nice to see this share double!
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12 REPLIES 12
Super Contributor
At risk? I suppose it depends. If you paid more than 30 cents a share, possibly. Mr Natha just bought Kagiso's shares for 30 cents and he bought Coronation,s 10% holding for 20 cents so he owns 29%. If Sanlam and MMI sell to him he will own 35% and then comes the mandatory offer to minorities and at the moment that could be at 30 cents. Minorities don't have to accept any offer but there do seem to be plenty happy to sell below 30 cents at present and precious few willing buyers. Lots of questions of course; like why is an Advocate buying this company, is he an agent for a interested party?
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Not applicable
Definitely some interesting things happening with this company and its securities. Perhaps part of the restructuring with added BEE status required for further big government contracts?
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Super Contributor
What big Government contracts?
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Super Contributor
... those is the announcements (just kidding)
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Not applicable
@klapka Interesting times to come methinks. I have a big holding at 17c and have been adding smaller chunks on the way up. I'm liking additional adding onto position up to 37c (my personal max entry). Interesting times. Above 30 I agree with you is ris
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Super Contributor
See a Director sold 7.3 million shares at 30 cents - the top price on the day. The sens says on market but it smells a bit too lucky to me. He is also a Director of Vunani who have been Esor's helpful bank roll recently. Time for Esor to explain what is going on?
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Not applicable
And the big buying continues...
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Super Contributor
Yep. Retail sellers are giving Mr Natha the edge at a song. But most retail shareholders don't watch what is going on.
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Not applicable
Agreed. This company has the potential to trade at 60c+ in the short term and much higher in the longer run. I would not be selling my stake at anything below 50c before the AGM later this month.
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Not applicable
According to the CEO this is NOT a takeover or buying of a controlling stake, only a 'meaningful' one, so I wouldn't expect a buyout of minorities at 30c. The gentleman who is buying this big stake will not be joining the board for now and I suspect he will bring some value to Esor over the next few years. If in doubt, ask. Some good things to come for Esor methinks. I am still shaking my head at people letting go of this share sub 48c (which is the net CURRENT asset value based on the latest financials, debt situation improved nicely this past year on top of the final putting to bed of the loss making contracts). This company is being sold at a bargain and in the process of returning to profitability imho (I would be keeping and eye out for some new contracts/partnerships this coming year) and with this latest info regarding all this big buying I will continue to accumulate sub 48c now with a TP @ 96c for half my stake and long term hold the other half.
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Super Contributor
NTAV is 148cents not 48.
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Not applicable
Net TANGIBLE Asset/Book Value is at 148c agreed, I'm not disputing that. I am talking about Current Asset Value, which is all their CURRENT assets minus total liabilities, which is at 48c. So in theory they would be able to pay off ALL of their liabilities with only their current assets, and still have 48c per share left of current assets plus all their fixed assets. Since any fixed assets (machinery, buildings etc) and any intangibles and goodwill are excluded from the NCAV calculation, one is essentially paying nothing for them at 48c per share. Its just another so-called margin of safety. Having the price sitting where it is now compared to tangible book value is a margin of safety on its own, but being in a very good debt situation, as they currently are, with the net current asset value at 48c, is an even stronger margin of safety. All of this coupled with their business recovery trajectory makes for an interesting investment case.
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