This blog gives you the latest topical news plus some informal comments on them from ShareSoc’s directors and other contributors. These are the personal comments of the authors and not necessarily the considered views of ShareSoc. The writers may hold shares in the companies mentioned. You can add your own comments on the blog posts, but note that ShareSoc reserves the right to remove or edit comments where they are inappropriate or defamatory.

Bacanora “offer” by Ganfeng

By Cliff Weight. Please note these are my personal views and do not necessarily represent ShareSoc’s views. I have never owned BCN shares, but am considering buying.

Bacanora is subject to a possible offer from Chinese firm Ganfeng at 67.5p. The Takeover panel have issued a put up or shut up notice. A shareholder action group has been formed, with 400 investors who collectively own 7% of the shares. To join click here https://savebacanora.com/blog/ They also have an active WhatsApp group.

The background is here:

https://www.northernminer.com/fast-news/ganfeng-lithium-grabs-bacanora-in-us265m-deal/1003830686/

https://www.telegraph.co.uk/business/2021/05/31/small-investors-battle-chinas-bid-london-listed-lithium-miner/

https://www.thisismoney.co.uk/money/markets/article-9641119/Backlash-sale-lithium-Chinese-predator.html

 

Following the rights issue at 45p in Jan/Feb 2021, I wrote to the LSE and FCA, as I and others in ShareSoc were worried about the big movements in the share price, the possibility of “pump and place” and concerns that some investors who were unaware of the upcoming placing had bought at inflated prices (at up to 65p). I wrote as follows:

To

Henry Postlethwaite, Market Integrity Unit, FCA
Mark Steward, Executive Director of Enforcement and Market Oversight, FCA
Marcus Stuttard, Head of AIM & UK Primary Markets, LSE

Dear Henry, Mark and Marcus,

I am writing to share ShareSoc’s concern about share price movements prior to placings. Our particular concern on this occasion is at the smaller end of the Main Market and AIM. What has prompted this letter is Bacanora Lithium, but I can easily give you other examples if you wish.

I would welcome the chance to meet to discuss our concerns.

I attach a letter with further background. Letter to FCA and LSE re market movements 6 Feb 2021

With best regards

Cliff

I have not had a satisfactory reply from either the LSE or FCA.

In the placing, Ganfeng and others were able to increase their holdings in Bacanora at what now seems a very cheap price, just 5 months later.

The BCN share price is today (3 June 2021) 57.00p, down -0.91p, -1.56%. The large discount to the 67.5p informal offer price, which the directors have indicated would be recommended by the Board, indicates that there is a probability that either a formal offer will not be made or that it will not get the necessary 75% approval and the market then expects the share price to reduce.

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