Back in October it was announced that Trinity - a private company - was to acquire Bayfield by means of a reverse take-over. It was an all paper deal with BEH shareholders receiving shares in the new enlarged Trinity. BEH shares were suspended pending completion of the transaction.
Since then, there has been a deafening radio silence. The shares remain suspended, which means that ordinary shareholders like me are locked in without any idea what is happening behind closed doors. Trinity shares were not previously listed so we have no idea what value the market will attribute to the new enlarged Bayfield-Trinity hybrid, For that matter we don't know whether our shares still have much value. This will of course increase the chances of a sell off when the suspension is lifted and lead to a disorderly market - precisely what a suspension is supposed to mitigate.
I thought I ought to poke around a bit to find out what is going on and when it will be sorted out. First stop was checking RNSs but there has been nothing since the announcement of the deal back in October. Next I thought I'd see if there was anything new on either company's website. I found that the Bayfield website has been taken down, so yields nothing at all - not even contact phone numbers.. The Trinity website is still up and running but does not appear to have been updated since well before the take-over announcement, so there is nothing of any interest there.
Next I phoned the UK office of Trinity. The telephonist said there was nobody around. I guess it's one of those Regus type of operations where the company has only a virtual presence. I then called the media relations firm listed by Trinity. A very helpful person told me that things were taking some time, because there were effectively 2 discrete stages to be negotiated. First the actual acquisition of the BEH business by Trinity, since this is a reverse take-over, then from a legal point of view, BEH is acquiring Trinity so the new owners effectively have to switch horses - or at least livery. Second the relisting of the new enlarged company has to be carried out in what was described as a procedure not dis-similar to an IPO with all of the documentation and red tape that…
Hi T,
If you're searching for clues on Trinity, you might find this helpful:
http://www.regentpac.com/ICMServlet/download/13-1691-2801/EAnnt-TrinitysMergerwithBayfield(15Oct2012).pdf
Mellon/Dattels vehicle Regent Pacific (HK:0575) bought a stake in Trinity in November 2011 in a placing - at a price 40% above the price implied by this deal. So they certainly valued Trinity considerably higher than the value implied by the Bayfield SP on suspension.
I look forward to reading the AIM Admission document in due course and might consider an investment here myself, noting your concerns about funding - which I'd hope to see addressed before readmission.
Cheers,
Mark
