20 July 2009business combination● Neutral
Gujarat lodges its formal Bidder's Statement: 9c cash or 1 Gujarat share per 5 Rey shares, as revised on 17 July. This is the formal document for the takeover bid first announced 3 June.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
20 July 2009capital raising announcement▲ GoodMajor
Rights issue closed with 72% take-up (21.9m of 30.6m shares); BBY takes the remaining 8.68m shares as underwriter, completing the $2.75m raise at 9c. Directors will reject Gujarat's revised offer; Rey closed at 14c, 55% above the 9c cash price.
17 July 2009business combination● NeutralMajor
Gujarat sweetens its Rey bid with a 9c cash alternative to its 1-for-5 share offer. It cuts the minimum acceptance from 90% to 50.1% and drops the shareholder-approval condition, making the bid far more able to succeed than before.
7 July 2009security holder rights change● Neutral
Chairman's letter says the Takeovers Panel declined Gujarat's bid to block the rights issue, which closes 16 July. Rey closed at 14c on 6 July versus the 9c issue price. Directors intend to recommend rejecting Gujarat's offer; Bidder's Statement still unreleased.
7 July 2009regulatory community update▲ GoodMajor
The Takeovers Panel declined to find unacceptable circumstances, so Rey's rights issue can proceed. BBY gave an undertaking to allocate any shortfall to sub-underwriters and keep its own stake under 5%. A setback for Gujarat's attempt to block the raising.
7 July 2009other● Neutral
Gujarat says it is satisfied with the rights issue after BBY's Panel undertakings to stay under 5%. It intends to issue its Bidder's Statement as soon as practicable, ending the delay it flagged on 30 June.
30 June 2009resource reserve update▲ Good
Exploration target of 450 to 500 million tonnes of coal (non-JORC) defined at Myroodah, suitable for underground coal gasification. Rey is in talks with potential UCG partners. It is a target only, not a reported resource.
30 June 2009other● Neutral
Gujarat says it is reconsidering the terms of its proposed takeover after Rey's rejection, the rights issue and its Takeovers Panel application. It will lodge its Bidder's Statement after the Panel decides, so the earlier late-June timing has slipped.
26 June 2009security holder rights change● Neutral
Offer letter and entitlement forms for the 1-for-5, 9c rights issue were posted to eligible shareholders. The offer closes 16 July. The cover note's '2008' closing year appears to be a typo for 2009. No new terms.
22 June 2009investor presentation● Neutral
MD update presentation restates the case for rejecting Gujarat's offer and the rights issue. Shows the 511Mt resource, 9c share price, cash of $0.9M at 31 May before the raise, and Gujarat at about 16.6-17%. Largely repeats announced points.
22 June 2009regulatory community update● Neutral
The Takeovers Panel received Gujarat's application seeking to stop Rey's rights issue as a frustrating action. Gujarat says BBY, as underwriter, could end up with up to 12% of Rey. No decision yet on whether to hold proceedings.
19 June 2009security holder rights change● Neutral
Shareholder letter restating the rights issue timetable: ex date 19 June, record date 25 June, offer closes 16 July, new shares trade 24 July. Offer not extended to holders outside Australia and New Zealand. No new terms.
18 June 2009other● Neutral
Gujarat replies publicly, criticising Rey's rejection before its Bidder's Statement and saying the 9c rights issue is priced below its implied 11c offer. It says it will take up its full entitlement and plans to lodge its Bidder's Statement the week of 29 June.
17 June 2009capital raising announcement● NeutralMajor
Rey directors reject Gujarat's offer as inadequate, highly conditional and, with a 90% minimum acceptance, incapable of succeeding. Rey also launches a partly underwritten 1-for-5 rights issue at 9c to raise $2.75m for the pre-feasibility study and working capital.
17 June 2009capital raising announcement● Neutral
Offer letter for the 1-for-5 rights issue at 9c: up to 30.6m new shares to raise about $2.75m, partly underwritten by BBY. Record date 25 June, closing 16 July, taking shares from 153.0m to 183.6m if fully taken up. Repeats the terms announced earlier that day.
What it means for a shareholder
30.6m new shares at about A$0.0899 to raise about A$2.8m. That's 14% dilution: every existing holder's slice gets 14% smaller. If you held A$1,000 of shares (11,127 at the issue price), your slice goes from 0.00606% to 0.00519% of the company. To keep it you'd need 1,854 more shares - about A$167 at the issue price.
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4 June 2009business combination● NeutralMajor
Gujarat NRE Minerals, holding about 16.7% of Rey, announced an unsolicited takeover intention on 3 June, offering 1 Gujarat share for every 5 Rey shares. Rey directors advise shareholders to take no action until the Bidder's Statement arrives.
4 June 2009director officer appointment● Neutral
Gujarat chairman Arun Jagatramka and alternate director Mihir Dave resigned from the Rey board. Gujarat, the roughly 17% holder, no longer has board representation. The text gives no reason; the timing coincides with Gujarat's takeover announcement.
1 June 2009resource reserve update▲ GoodMajor
Duchess-Paradise Indicated resource upgraded 51% to 144Mt (from 91Mt), lifting the total to 511Mt from 498Mt, all in the P1 seam. This delivers the Indicated upgrade promised for June. Pre-feasibility study is under way, due end 2009, targeting a 2Mtpa open pit with production from 2012.
28 May 2009investor presentation● Neutral
MD presentation at the BBY conference repeats the 498Mt Duchess-Paradise resource and the 2012 first-export plan. New figures are a 5c share price, $7M market cap, $1M cash and Acorn Capital at 8%. Nothing new on the project.
11 May 2009admin correction● Neutral
Amended Appendix 3Y corrects the date of change to 8 May 2009 for Chairman Julian Ludowici, who bought 66,158 shares on-market for $3,800. Administrative correction.
1 Apr 2009resource reserve update▲ GoodMajor
Maiden JORC resource at Duchess-Paradise: 498 million tonnes of thermal coal, including 126Mt Measured and Indicated. The upper seam can be washed to export-grade; the lower seam suits domestic use. Upgrade to Indicated expected by end June quarter; pre-feasibility study to start. Delivers the promised Q1 2009 resource.
27 Feb 2009half year report● Neutral
Half-year to 31 December 2008: loss of $1.92m on revenue of $120k. Net tangible assets are 4.5c per share across 153.0m shares. Operations text repeats the drilling results, with the JORC resource still due Q1 2009.
30 Jan 2009director officer appointment● Neutral
Neil Stack resigned as company secretary as part of cost rationalisation. Chairman Julian Ludowici and Rolando Tinoco are appointed joint company secretaries. Administrative change reflecting cost cutting.
26 Nov 2008investor presentation● Neutral
MD presentation after the AGM repeats known points: 25,000m drilling completed, resource due Q1 2009, cash about $3m, share price 10c, market cap about $15m, 153m shares. Gujarat holds 17%; directors and management 20%. Nothing new.
22 Oct 2008annual report● Neutral
2008 annual report mailed. Chairman says maiden JORC coal resource is on track for Q1 2009 and a third drill rig has been added. South American tenements are on care and maintenance; sale offers did not meet the company's terms.
21 Oct 2008capital raising announcement● Neutral
Placement completed: 16m shares at 10c ($1.6m), against a weighted average market price of 11.1c. Directors will take 6.8m of the shares, subject to shareholder approval. Veritas Securities advised. Resolves the 17 October raising.
What it means for a shareholder
16.0m new shares at A$0.100 to raise about A$1.6m. That's 10% dilution: every existing holder's slice gets 10% smaller. If you held A$1,000 of shares (10,000 at the issue price), your slice goes from 0.0073% to 0.00653% of the company. To keep it you'd need 1,168 more shares - about A$117 at the issue price.
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17 Oct 2008capital raising announcement● NeutralMajor
Rey will place up to 16.0m shares at 10c to raise $1.6m. Funds go to Canning Basin drilling, including early investigation of coal for underground gasification, JORC resource calculations and working capital. The price is below the 11c-15c of earlier 2008 raisings.
What it means for a shareholder
16.0m new shares at A$0.100 to raise about A$1.6m. That's 10% dilution: every existing holder's slice gets 10% smaller. If you held A$1,000 of shares (10,000 at the issue price), your slice goes from 0.0073% to 0.00653% of the company. To keep it you'd need 1,168 more shares - about A$117 at the issue price.
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2 Oct 2008drilling result● Neutral
Coal quality update announced for the Canning Basin drilling. The text is garbled, so no specific results can be reliably read; it appears to report first laboratory analysis, following the September lab-results expectation.
26 Sept 2008director officer appointment● Neutral
Alternate director Jose Bahamondes, a founding director, resigned to pursue other projects overseas. Administrative change with no stated effect on operations.
26 Sept 2008annual report● Neutral
Full-year statutory accounts to 30 June 2008. The excerpt shows only the directors' report and board biographies, with no financial figures, so nothing new beyond the board already known.