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Wanna buy shares at 11 cents when a £3.50 bid has been tabled? Welcome to the crazy world of Africa New Energies

By Tom Winnifrith | Monday 17 July 2017


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.


Back in February 2017 I was contacted by a private company Africa New Energies asking if I wanted to buy shares in a placing at 11 cents. Since the company is run by Stephen Larkin, a man who takes advice from loathsome Richard "Gollum" Gill I was nor rushing to sign up. But then I was told, but we are going to be taken over soon at 350p per share a bid has been tabled! Er... so is this placing not sort of insider dealing I asked?

The company's Legal Counsel opined that it was not because inter alia

1) ANE is not on a regulated market
2) More importantly and conclusively, section 58 of the Criminal Justice Act 1993 defines what it is to make information public.

Under section 58 (2) (c) of the Criminal Justice Act 1993, information is made public if it can be readily acquired by those likely to deal with the securities to which the information relates or it can be readily acquired by those likely to deal in any securities of an issuer to which the information relates.

THE INFORMATION ABOUT THE OFFER HAS BEEN DISCLOSED TO ALL OF ANE'S SHAREHOLDERS. FURTHERMORE, ANE IS ACTIVELY TRYING TO DISSEMINATE THE INFORMATION ABOUT THE OFFER AND WE ARE NOT CONCEALING DETAILS OF THE OFFER.

Oddly, even though this was not insider dealing, the directors were not taking part in the placing. FFS why not? If it is kosher and I knew that I had a chance to make a 44 bagger in a few months why on earth would I be cutting any mug punters in on the action?

On Sunday in his most excellent Sunday Times column Luke Johnson said that his worst investments were ones that seemed unbelievably cheap, where things were almost too good to be true.

I'd rather saw my gonads off with a rusty knife and without anaesthetic then fry them and eat them, than back a pal of Gollum especially when the proposition is such obvious horse. It will not surprise you that the bid appears not to have emerged and indeed pissed off shareholders have set up a shareholder action group noting, inter alia, a failure to produce any accounts for years, the non appearance of the 350p per share offer, the ongoing sale of shares at 11p, etc etc etc.

If you are a shareholder in this company you can find out more HERE

The morals of the tale

1. Anyone linked to Richard Gollum Gill should not be touched with a bargepole
2. If it sounds too good to be true it is too good to be true.


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