By Tom Winnifrith, The Sheriff of AIM | Saturday 17 October 2015
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Another deadline arrives and it is yet again missed. How long can the long running farce of the takeover of Old Mother Worthington (WRN) continue?
You will remember that Worthington – a company built on smoke and mirrors and which does not generate cash and has sod all cash – is trying to reverse into Danish listed Nuna Minerals which is bankrupt. So a company worth zero (or less) wishes to reverse into a company worth less than zero. Thus for this marriage from hell to go ahead Nuna needs to be refinanced.
Worthington is only heading down this route because it can’t publish a prospectus to allow its LSE listed shares to be unsuspended. One assumes that in the land of Hans Christian Anderson one can get away with a fairy tale prospectus.
The two problems Worthington has is finding anyone daft enough to pony up the funds and getting any sort of prospectus together which will cut the mustard in Denmark. So we have another delay announced on Friday:
Pursuant to Rule 2.6(c) of the City Code on Takeovers and Mergers (the "Code"), the Company has requested a 28 day extension to the period of time whereby Nuna Minerals A/S ("Nuna") must, under Rule 2.6 (a) of the Code, either announce a firm intention to make an offer for the Company, or announce that it does not intend to make an offer. The Takeover Panel has consented to this extension. Therefore the extended deadline is now 5pm on 13th November 2015.
The Company understands that progress is continuing to be made in relation to the proposed refinancing of Nuna by Greenland Mining Management Ltd. There can be no certainty that these discussions will lead to an offer being made for the Company, nor as to the terms on which any offer may be made.
I should cocoa. I recommend that Danish regulators read all the recent comments about various individuals and companies within the Worthington Group before deciding on any admission if indeed it gets that far. They can do so here.
Meanwhile I have not chatted to anyone at the Serious Fraud Office for a while, I had an interesting chat on this matter from someone close to Worthington on Friday. Smiley face!
If the shares are ever unsuspended the target price remains 0p
Never miss a story.
This area of the ShareProphets.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ShareProphets.com. ShareProphets.com does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ShareProphets.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ShareProphets.com and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.
Search ShareProphets |
Stock market news |
Recent Comments |