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MFC Industrial Ltd. Message Board

  • northoil northoil Nov 11, 2013 11:58 AM Flag

    Rights Plan

    Is the new rights plan aimed at Kellogg? He's got 33% now and it wouldn't take much, if any, to have a voting majority or actual majority. Any opinions on this?

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    • Neither MFC nor Kellogg have problems to make deals with the chinese - look what happend to KHD - in october 2013 "AVIC International Beijing Company Limited Announces Acquisition of Further 19.03% Of Shares In KHD Humboldt Wedag International AG And Will Make A Public Takeover Offer" - Kellog sold his shares to AVIC to help them do so.... now he owns 33% of MFC-shares, how many belong to MJS&family, 20% ? could this be the cover-up of done -longplaned deals?

      While googeling for "Pea Ridge Mine" just found on the website of "Anjie Law Firm", Bejing, a lawyer called "Zheng Xilin" - one of his deals in his bio:

      "Representing Beijing Huazan Investment Co. Ltd in its purchasing property rights of an American mineral company and obtaining iron mining rights in Pea Ridge Ore Mine"... (sorry but couldn`t find anything else about info, e.g. which date etc. )...

      On their website it says: Bejing Huazan Investment Co`s subsidiary "Cathamer Investment Company Ltd" is a privately held investment firm based in Hong Kong. Principals of Cathamer have led over USD $4 billion of equity investment in Asia, the United States and around the world in the last 10 years. The firm has three primary areas of focus: (i) metals and mining, (ii) infrastructure, and (iii) special situations. We seek to partner with talented management teams to acquire and grow their businesses. We believe in conservatively financing our companies so that their capital structures do not prevent them from achieving their business objectives. We view our role primarily as one of supporting management in executing their business plan and providing assistance on strategy, industry knowledge and contacts, and financings.
      Till today, Cathamer has actively involved in a few large scale resource and mining projects in U.S. and Africa, involving natural reserves over billions tons."

      Not to forget thar last year a delegation of MFC/Alberici was in China for consultations about pea ridge mine/REE...

    • "If a shareholder's beneficial ownership of MFC's common shares as of November 11, 2013 is at or above the 20% threshold, that shareholder's existing ownership would be grandfathered under the Plan, but the rights issued would become exercisable if such grandfathered person increases its ownership by more than 0.01%, including any acquisition of more than 0.01% of the Company's common shares made after any disposition of common shares."

      It's pretty clear this is aimed directly at Kellogg. If it passes (and I don't see how it can stopped) basically any acquisition by Kellogg would trigger the rights issues and most likely also a legal fight.

      This is squarely aimed at making sure Kellogg does not get 51% ownership through any "public or private" transaction. This tells me that MJS is worried that there are others that are not happy with either his execution and/or his obfuscating management style, and he is worried about losing control of what essentially has been his own private financial fiefdom until now.

      This could get very very interesting, but I do think it will be beneficial for retail shareholders, one way or another.

      Sentiment: Buy

    • Fascinating to say the least...
      Watching Kellogg become a visible Activist Shareholder and the belated response of MJS.
      I think all MFC shareholders stand a pretty good chance of seeing greater value realized before this "friendly" discussion is over.
      On another note...Watching Mercer do its current run leads me to another "possible" change for MFC...
      I'd like to see Jimmy Lee back in the MFC management structure...
      What a team when Michael/Rennie/Jimmy ran the show... A LOT of outstanding synergies!
      They, like myself, are all Old(er) Farts now and, for some, more wisdom comes with greater experience.
      The call this week should be MOST informing and "educational".

    • My take is yes. Hopefully this gets explained and discussed in detail during the CC.

2.03-0.12(-5.58%)Feb 9 4:01 PMEST