30th July 2021 at 11:24 am #19066Cliff WeightParticipant
Dee Patel has written to M&G (Rupert Crafting, Head of Corporate Governance and copied to CEO Michael Stiasny) as follows:
Dear Mr Krefting,
I’m writing to you in response to the several articles I read regarding M&G’s response to the proposed Morrisons takeover, and how it echoes our feelings regarding Bacanora Lithium.
We were all very pleased with the response you had to this, and feel that this times well with the recent events surrounding Bacanora Lithium. Whilst the size and scope is incomparable, we feel the principle is the same. It is a clear case of purchasing assets at below fair value.
With regards to Bacanora, we have seen multiple extensions requested by the board. It is a clear case of pushing through an undervalued takeover by way of attrition. As they continue to delay and stall, we’re expecting long term holders to soon manage their risk (particularly those holding at a profit) with more traders entering.
We still hold over 8% of the float, with the larger holders maintaining their holdings.
Ganfeng are intimately involved in this project, and clearly a ‘due diligence’ extension is nothing more than a ruse. Ganfeng have cash in the bank, government approvals and a need to procure assets sooner, rather than later.
Several shareholders are also fund and shareholders of M&G. There is an opportunity for you to take both a stand, and a lead on this.
I appreciate that there is a risk in playing your hand too early, but to put our cards on the table:
1. See this through to production.
2. If we cannot stop this takeover, then it’s imperative we maximise the price we extract from Ganfeng.
We appreciate that acting prior to a formal offer allows time for the board to maneuver – But they’re using these extensions to buy themselves time. This hasn’t progressed as quietly as they’d hoped. We’ve generated media, shareholder and government attention.
With an interest in self-preservation above their shareholders, the board clearly want this shareholder dejection to become yet another forgotten page of boardroom greed and short-sightedness.
We want to work with you to attain fair value, and we have hundreds of shareholders that will be more than willing to see you take the lead on this – At the very least, to liaise with us. Such an action would show M&G to be a step above your peers.
The longer we wait, the more likely we’ll receive 67.5p and a large glass of salt water for sweetener.
The board have used us as placeholders, and from the 31 risks listed on the AIM submission document; Board capitulation was not on that list.
We (I hope you’ll allow me the liberty of saying ‘we’) are here to make money.
We’re not here to fight the government’s geopolitical battles for them. We’re not here to counter the growing influence of China. We’re here to realise an investment made in good faith. Subsequently, we must take action in order to achieve our common aims.
An institution and private shareholders have never combined like this before.
It’s a PR coup for yourselves, and an opportunity for us to either see this through to production, or maximise the takeover price.
I hope you’ve stopped receiving emails from our members, as we’ve asked newcomers to stop emailing.
I’d very much appreciate a video chat with yourselves at some point, or even a face to face one.
I thank you for taking the time to read this email.
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