Up next
Author

Another week, another company heading for the exit – this time, small gold miner Shanta Gold, on the receiving end of a 14.85p bid from multinational conglomerate ETC Holdings.

Midas recommended Shanta in 2021, when the shares were 8.25p and looked again at the East Africa-based firm last autumn, when the stock was 10.6p. 

ETC’s offer is a juicy premium to both prices and includes a 0.15p dividend, taking the full price to 15p. Even so, the rationale behind this deal is a sorry indictment of the London market.

Shining bright: Gold prices are at record highs and Shanta Gold is in fine fettle

ETC is run by Ketan Patel, who founded Shanta in 2001 and remains on the board. Patel believes the gold miner is undervalued on the stock market. 

Other directors seem to agree and recommended the bid, alongside specialist organisations that advise large shareholders on how to vote.

Having offered 13.5p for Shanta in December, ETC improved its bid over a week ago. The voting deadline is tomorrow and momentum is gathering in ETC’s favour.

Midas verdict: Gold prices are at record highs and Shanta Gold is in fine fettle. The share price does not reflect this and Patel has pounced. Should his bid go through, shareholders will secure a tasty spring bonus but the stock market may lose another strong company. Wake up London!

Traded on: Aim Ticker: SHG Contact: shantagold.com

#fiveDealsWidget .dealItemTitle#mobile {display:none} #fiveDealsWidget {display:block; float:left; clear:both; max-width:636px; margin:0; padding:0; line-height:120%; font-size:12px} #fiveDealsWidget div, #fiveDealsWidget a {margin:0; padding:0; line-height:120%; text-decoration: none; font-family:Arial, Helvetica ,sans-serif} #fiveDealsWidget .widgetTitleBox {display:block; float:left; width:100%; background-color:#af1e1e; } #fiveDealsWidget .widgetTitle {color:#fff; text-transform: uppercase; font-size:18px; font-weight:bold; margin:6px 10px 4px 10px; } #fiveDealsWidget a.dealItem {float:left; display:block; width:124px; margin-right:4px; margin-top:5px; background-color: #e3e3e3; min-height:200px;} #fiveDealsWidget a.dealItem#last {margin-right:0} #fiveDealsWidget .dealItemTitle {display:block; margin:10px 5px; color:#000; font-weight:bold} #fiveDealsWidget .dealItemImage, #fiveDealsWidget .dealItemImage img {float:left; display:block; margin:0; padding:0} #fiveDealsWidget .dealItemImage {border:1px solid #ccc} #fiveDealsWidget .dealItemImage img {width:100%; height:auto} #fiveDealsWidget .dealItemdesc {float:left; display:block; color:#004db3; font-weight:bold; margin:5px;} #fiveDealsWidget .dealItemRate {float:left; display:block; color:#000; margin:5px} #fiveDealsWidget .dealFooter {display:block; float:left; width:100%; margin-top:5px; background-color:#e3e3e3 } #fiveDealsWidget .footerText {font-size:10px; margin:10px 10px 10px 10px;} @media (max-width: 635px) { #fiveDealsWidget a.dealItem {width:19%; margin-right:1%} #fiveDealsWidget a.dealItem#last {width:20%} } @media (max-width: 560px) { #fiveDealsWidget #desktop {display:none;} #fiveDealsWidget #mobile {display:block!important} #fiveDealsWidget a.dealItem {background-color: #fff; height:auto; min-height:auto} #fiveDealsWidget a.dealItem {border-bottom:1px solid #ececec; margin-bottom:5px; padding-bottom:10px} #fiveDealsWidget a.dealItem#last {border-bottom:0px solid #ececec; margin-bottom:5px; padding-bottom:0px} #fiveDealsWidget a.dealItem, #fiveDealsWidget a.dealItem#last {width:100%} #fiveDealsWidget .dealItemContent, #fiveDealsWidget .dealItemImage {float:left; display:inline-block} #fiveDealsWidget .dealItemImage {width:35%; margin-right:1%} #fiveDealsWidget .dealItemContent {width:63%} #fiveDealsWidget .dealItemTitle {margin: 0px 5px 5px; font-size:16px} #fiveDealsWidget .dealItemContent .dealItemdesc, #fiveDealsWidget .dealItemContent .dealItemRate {clear:both} }

Read More: World News | Entertainment News | Celeb News
Mail Online

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

GameStop soars 70% as ‘Roaring Kitty,’ who drove meme craze, resurfaces

GameStop shares rallied dramatically on Monday after “Roaring Kitty,” the man who inspired…

U.S. wins global leadership approval over China when a Democrat is president, Gallup analysis shows

China’s President Xi Jinping and U.S. President Joe Biden at the G20…

Fed could cut rates fewer times than expected as economy keeps growing, according to CNBC survey

Federal Reserve Chair Jerome Powell testifies during the Senate Banking, Housing and…