Why I think it means multiple offers are being considered
So we know we have a credible party that the Board is progressing with (12.5.21)
This also means that every single other company that was interested knew they were no longer in pole position and had to withdraw or come back with a better proposal. I’ve said this before it isn’t much more than a simple statement of fact.
You don’t want to lose the credible party but equally you don’t want to lose better proposals if they did arrive.
The latest RNS about West Kytlim was a little hint towards this being the case – strategic options on the table.
So how do you handle it ? Two options as I see it.
1. Announce you have multiple interested parties again and update shareholders (what I wanted to see as proof of my theory but hasn’t happened)
2. Stay silent
If you announce it, does the credible party get the hump and lose interest feeling they are being played ?
If you stay silent shareholders bear the brunt but it keeps the process alive inside the loop. Perhaps you do what you can to appease but essentially it is focus on the deal. All forgiven when it concludes etc. I believe the line about options was the hint.
This sounds to me like where we find ourselves. If you trust the Board then it’s easier to believe in a decent outcome, they have delivered so far in abundance.
The amount of negativity and worrying springing up is two fold. Genuine worry I get it, investing is never a smooth path. The larger holders remain intact. If the former adviser hadn’t had his cash call we would be higher priced, Churakov did buy back most of his shares though. Obviously the Board haven’t sold any shares throughout this process
But for those attacking and spreading false rumours, I get it as well. Enjoy your moment, it won’t last forever. One RNS will spoil your fun permanently.
Sometimes silence is golden, well platinum…