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Dawto I agree. I'm having serious doubts about this now. I find it very strange that my broker hasn't informed me of this offer.
So I did some investigating re Euroclear and it seems you need an account to start the process of transfer, but this could take a week, so why the impossibly tight deadline of 28th Feb 2019? Plus the offer document urges shareholders to hurry, and not delay.
The document also refers to Daniel Stewart as DSS and not Dan, which was always its ticker, which I though was a bit strange.
Atlantic Carbon Group actually has a website called atlanticcoal.com which looks insecure as there's no padlock in its search box.
So I called my brokers at Hargreaves Lansdown, and their corporate affairs team advice was to take no action until they'd looked through the documents I sent them. They said it could well be a scam as they'd received no information regarding Daniel Stewart and that it was most unusual to to get an acquisition offer to be taken up in this way.
I'm sitting tight until HL get back to me.
Having been on the ATC chat board it doesn't look like this is a scam as Hargreaves Lansdown suggests. I think its more the case that HL haven't had any information regarding DAN holders. In fact DAN apparently went into administration on 1st Feb 2019.
It looks like what's happening is that ATC would like to re-list on the main market, but is not big enough to achieve that market listing. If, however there is a market registered company thats no longer trading then ATC can reverse acquire it and get onto a main market much easier. Daniel Stewart fits the bill perfectly. So ATC reverse acquires DAN and hey presto, gets a market listing.
The next thing is what do current DAN holders get out of it. Well its looking like 10% of the new group according to ATC's offer document. DAN changes its ticker to DSS and becomes the parent company, ATC changes to ACG and the whole group becomes Atlantic Carbon Group PLC.
So if we get 10% what's that worth? Well there are figure of 100m, 200m and 300m flying about. If we say 200m then DSS holders will be worth 20m. Next question is how many old DAN shares are in circulation? If we knew that figure then we could work out how much our individual holdings are worth. Though I fear the value will be much less than we paid for them.
There maybe an option to convert our holding to the new shares prior to re-listing and this could be done at the nominal value, which is £0.025 which would be good as I think we should increase our shareholding. However our true value may not be apparent until after listing and trading starts. Any conversion to the new shares would then be at whatever the market value is, which could be anywhere between 0.05p and 2.5p, which gives us a much smaller holding.
I'm making assumptions here, but they are only assumptions. No information has been released to DAN holders or their nominees, of which mine is HL. Nobody has any real idea how this merger/acquisition will effect us, but if anyone has any further thoughts then please post. We need to know what's going on.
GLA.
It is a bit naughty. Asking tus to approve something which we have no way of knowing the value of repercussions of doing so. The thing is, it is what it is and we don't really have a choice.
As you say, we have no choice in the matter, and we don't have a vote as DAN has just gone into administration. Neither have we been informed by ATC as to what our entitlements are. It's all in the hands of the ATC shareholders to approve the reverse acquisition and merger. We have no say.
I would still like to know how many DAN shares are in issue to get a better idea of our proposed 10% will be worth, and I'd also like to know if there is provision to convert DAN shares to the new ACG shares at the nominal price of £0.025 and not have to wait until it launches as it will inevitably be higher than that. It's a really grey area for us.
With all this going on and this board being very quiet, I can't help feeling that many Dan holders are unaware of what's happening. Furthermore my broker doesn't even know what our position is as they haven't been informed as yet.
Had a chat with Hargreaves Lansdown and apparently Daniel Stewart aren't in administration otherwise they would have informed us. This is what I got from an ATC document:
DSS is a separate entity to Daniel Stewart and Company PLC which we have been notified went into administration on 1 February 2019.
Atlantic Carbon Group Plc
7 February 2019
So I don't know what this means. Looking at the wording it could be that Daniel Stewart and Company PLC was some sort of subsidiary. Cant explain this at the moment though.