Bannerman Receives Acquisition Proposal

[James.Anderson]

Price when up 30% at opening of market! What does everyone think about this?

Bannerman Receives Acquisition Proposal (http://www.asx.com.au/asxpdf/20110711/pdf/01196471.pdf)

Currently hold BMN but unsure if I should Sell as other companies may put higher offers in??

[drillfix]

Hi James,

Its best to make the call based on your own %gains or losses whether you should hold or sell. Only you can be the best judge of that.

In the ann there is a statement at the beginning of the 2nd page saying:

There can be no certainty that the Hanlong proposal will proceed and it is possible that a final position will
not be known for some months. Bannerman will provide further updates to the market at the appropriate
time.


To me this still presents some possible uncertainty and there are lots of market jitters around as well to also take into consideration.

The proposal which is @ 0.612c Cash per BMN share is still much higher above the current 48c trading price, but there is still much uncertainty which include the list of conditions set in the first page.

Me being a trader, I would take any gains or at least Take half off the table and let the other half ride. This way I would lock in some profits, or if you bought at 24c something, then to go free carried would even be a better option to see how things pan out.

Good luck with whatever you decide to do :)

[lawrence]

How come the share price is 48c when the offer is .62c am I missing something ?

[Entrep]

How come the share price is 48c when the offer is .62c am I missing something ?

looks like you missed the post right above yours

[lawrence]

Thanks Entrep having a senior moment gee's cant believe I never saw that, doh!

[shasta]

Thanks Entrep having a senior moment gee's cant believe I never saw that, doh!

Wait til the BMN directors announce there view on this, normally they would inform shareholders to hold off while they secure an independent valuation.

Im surprised there hasnt been more consolidation in the Uranium sector, ok the Japanese problem has set Uranium back, but there are many countries still going ahead with new nuclear reactors, & even the operating ones that are to be decomissioned etc, this process takes a long time, & there is a long lead time in constructing new reactors/nuclear plants.

[James.Anderson]

Thanks for the reply guys. I will keep my holding in the hope that another company may offer more! If not I will wait for the offer from Hanlong Group - I may even buy some more seem the price is currently dropping!

Regards James Anderson.

[shasta]

Thanks for the reply guys. I will keep my holding in the hope that another company may offer more! If not I will wait for the offer from Hanlong Group - I may even buy some more seem the price is currently dropping!

Regards James Anderson.

Having read the proposal, the fact the share price hasn't jumped to the "implied value", is due to the onerous number of conditions, the BMN Directors have stated that this proposal is opportunistic due to a weak share price, & the fact they wont agree to a 3 month exclusive due dilligence tells me BMN isnt interested in the deal.

Here's the conditions:

The Hanlong proposal is subject to a range of conditions including:
 completion of due diligence by Hanlong to its satisfaction on or before 30 September 2011;
 receipt of Chinese approvals (including from the State Administration of Foreign Exchange, the National Development Reform Commission and the Ministry of Commerce);
 a Bannerman Board recommendation (a necessary pre-requisite given Hanlong’s proposal assumes a Bannerman scheme of arrangement under Australian law);
 obtaining support from major shareholders;
 continuity of Bannerman senior management;
 approvals by related stock exchanges (if required);
 Foreign Investment Review Board approval in Australia and approvals by any other governments/jurisdictions (if required);
 no material adverse change or other prescribed occurrences;
 no material transactions, claims, new commitments or changes;
 absence of regulatory intervention;
 no third party consents required; and
 negotiation of transaction documentation

If you are looking at buying more, do so on the basis of BMN's current plans & NOT on the back of this deal.

Given the complexity of the deal i would give it no more than a 10% chance of success