Guess the ENRC bid price to win a case of SA’s finest wines!

1 mins. to read

With the 17 May deadline for a firm bid or otherwise by the 3 ENRC oligarchs now looming, and the purchasing of stock (approx 3%) in recent days by Suleiman Kerimov and who seems to be positioning himself with Kazakhmys as ‘kingmaker’ (they need 75% to de-list), it looks to us that odds are a bid will occur.

Considering the issues surrounding corporate governance and bribery allegations, the oligarch founders will most likely want to bring the London listing “adventure” to a close.

We tipped the stock as a Top pick for 2013 in this edition here – and speculate about a target price north of 400p. In our opinion, if the saga that has been ENRC is to be brought to a swift conclusion, a price anywhere between 330-375p is required to wave it through. If Vladimir Kim acts rationally then he will look to leverage KAZ’s key stake in ENRC to push for a price of 375p which is exactly where they have ENRC in the books. They have in fact paid in excess of this for stock in recent years.

This mornings price action, although presently without the “smoke” volume, is a positive sign for the bulls (see chart below).

We invite readers to submit their estimate of a bid value and the closest (if multiple correct answers then the first received) will win a case of SA’s finest wine’s courtesy of us! Vladimir and Suleiman exluded!!!

For the record we’re at 360p.

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