If there is an offerIf there is a takeover of FIU the shareholders will have to vote on it. They do not need every single vote to get the deal done. I am not sure about the exact percentage but I am guessing that ¾ of the share holder approval might be sufficient to approve & pass the deal. What we retail shareholders feel will not matter. It is the large institutional investors will be able to make the decision for us.
All large institutional shareholders are holding this stock at a loss. Since the stock has dropped from $1.00 very few shares have traded. I have not seen any large institutional selling or buying taking place in the open market. Village was able to sell a large block at $.60 but that deal did not go through the open market. Since the volume has dried up & the stock has drifted lower on low volume all large institutional are holding the stock at a huge loss. Some a very few investors would have averaged down but at the present prices almost everyone is holding the stock at a loss. Beside Anglo deal at $.60 no other institution has been able to get in or exit the stock in large quantity. Investors of last financing at also still holding the bag.
It is difficult to say at what price & for how much loss ¾ shareholders will be able to accept the deal. Village was eager to get cash for some of its assets but other share holders such as Franco Nevada & Sprot might not be that eager.
The good thing is that there are few very large investors who have huge vested interest & they will do a proper in-depth review & would not allow anyone to take advantage of the present situation , low share price & market cap.
If any offer comes in then decision will be made by large institutional holders. I do not hink that FIU is a retail stocks & the retail votes would not matter in the larger picture of takeover.
About 8 months back $50 million financing was oversubscribed at $1.00. Certain targets have been achieved in the meantime & in principle it should add more value to the company in real terms. It is unfortunate that the market is not recognizing the real value of the company due to certain reasons. This does not mean that the present shareholders do not recognize to true value of the company & would take unnecessary loss. The attitude of SA may put some pressure on them to take somewhat lower price & accept certain losses.
As far I am concerned every South African based mining asset company should trade at a discount because of reckless & high handed government policy. What they are doing will not continue for ever.