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Well it depends what you do with the remaining 90k shares - keep them, sell them?
If, as a hypothetical example, you buy 100k then sell 90k at today's bid-offer spread 35.3, 36p (at the time of writing) and including dealing costs and stamp duty, sell 10k for 0.46p then I estimate you would make £166 profit!
The stamp duty takes a chunk (£180 or 0.5%) and the spread. So whether you make a (decent) profit critically depends on what price you can get for the 90k ...
QF
So let's say today Mr x decides it's not a bad deal
Buys 100k shares
Tender offer takes 10,000 of him 10p ish gain
resulting in a gain of 1k
is that correct??
now san leon is doing well after 8 years of nothing perhaps san leon now want all the shares in private hands and perhaps that is what they are up to.slowley slowley catchee monkey. they did seem to say there would be more offers comming our way.
https://www.investopedia.com/terms/c/creeping-tender-offer.asp
What is a Creeping Tender Offer
A creeping tender offer, also known as a creeping acquisition, is a takeover strategy involving the gradual acquisition of a public company's shares on the stock market, instead of making a direct bid.
the tender offer is only for 10percent of your shares so you could sell just your 10percent at 46p which is probably the best you will get for a long long time and then by them back again same day at a cheaper price probably about what the price is settled at today. you make 10pennys per share. will you make enough to get a bottle of wine from batman and robins cave.this is there favorite i think. https://www.thewhiskyexchange.com/b/378/san-leon-fortified-wine
Thanks both for explaining the offer and i understand now and i bought San Leon many years ago so showing a large loss so i am not taking part in tender offer and i will keep my fingers crossed and hope san Leon creates more value for its shareholders and many thanks both
Yes. The balance of February will likely remain a busy period for comms from the Company,
Isn't an update well overdue by now, as spudding took place on Dec 10th?
"Eroton has confirmed that a rig has now been fully positioned at the well site, and is expected to commence drilling in the next few days. Well OSMU-1 is expected to take up to 60 days to drill to around 11,900 ftMDBRT (measured depth below rotary table) and complete".
I would add to my friend Mclean91 who has been spot on with his analysis this last 6 months (alongside a few of us believers!)...in case portsmouth72 you havent gone back thru the blogs on here...SLE has a quarterly income derived from a loan which pays it some $18mm/quarter and will continue to receive this til mid 2020. The SP has been kept artificially low I think its fair to say by some pretty low - in fact maybe dishonest and deliberately misleading might be better words - behaviour, mainly eminating from the Nigerian mafia it would seem who had a vested interest from the failure of SLE.
The company is now on a firm financial footing, because in addition to the quarterly loan repayments it has, as has been noted on here yesterday, other very attractive assets including a 10% (near enough) holding in a Nigerian oil asset which has been termed by the industry as 'world class'. Its near 5% economic holding in BarryRoe will also likely lead to some attractive returns.
As a result of all this the company has chosen to return $30mm at 46p to shareholders, all of whom will get the chance to sell AT LEAST 10% of their shares to the company for cancellation at 46p on March 20th. The company has also left the door open to further capital returns as the cash builds up, thus why some on here feel the SP has further potential upside. I personally think 46p is a noteworthy price, given that is - albeit the world's smallest - a premium to its last capital raise and where it is likely we will discover in due course that Jite bought STT's equity stake.
The future is indeed bright, notwithstanding the twin risks of the price of oil and being involved in 'frontier mining'. I can't quite say my 45p target by end of march reached, but I reckon it was a bloody good call!
Hello everyone and please can someone help me to explain the tender offer to me, i am confused, is San Leon buying the private shareholders out and will San Leon still be quoted on Aim or is it San Leon just giving shareholders a opportunity to cash in and the company will carry on trading as normal and many thanks in advance for your help and kindness
Or the Barryroe 4.5% NPI, for that matter, should it get a production go-ahead one day in the medium-term?
Has anybody got a good handle on the value of SLE's 10% holding in OML 18, assuming 46k bopd for the entire field? I don't know the all-in costs/bl of production, or the tax/royalty take.
love the maths, bluerill (and your fake Fake News gag first thing, which had some confused and pee'd off the squirrels no doubt - where are you guys btw?).
see this properly trading at a discount to the tender price but not as much as we're seeing so far, so maybe once the market has woken up a bit we should be 40p- 42p. we should also have significant newsflow still to come and likely to be positive, so arbitrageurs will need to move quickly.
i know some of us have said this many times before but as we now see the cash piling up in our account (which must be the envy of many AIM oilers) and see how much still to come all at 17% interest, it is clearer what an outstanding deal this was, effectively delivering us 10.5% of a world class oil field for nothing. what value that and Barryroe in the SP today? this has got plenty more to go yet...
BS - no idea! But the company survived and here we are.
QF - Further to my comment of 0919 am today - I would add that the loan note interest payable till 2020 have allowed SLE the financial squiggle room to continue with participation in the development of OML18, despite the need for existing wells to be renovated, new pipelines to be built and to survive delay revenue payments from the NNPC/Eroton. Did OF foresee how fortuitous these payments would turn out be for the survival of SLE probably not but fortuitous they have certainly been under the circumstances we have been subjected to over the last years?
BS - yes and, given that Barryroe is beginning to move forward and the number of large investors with purchases at or around the 45p mark plus all the other points in Mcleans ii posts and from bluerill earlier, all the signs are that the future sp will be >> 45p.
I have some shares purchased at 21 and at 26p (but overall average is 65-70p) but at the moment I'm inclined to hold. It will be interesting to see if the SBB impacts the free float significantly (depends on what type of shareholder takes up the offer) as this could lead to more trading opportunities (short term spikes) which I'm sometimes in a position to exploit (day job permitting!).
Looks like our fake Nigerian - the one who can revert to very good English when provoked - is still short ...
QF
mrpc1 it is only a move of 30 to 46 for 10percent of the shares the other 90 are variable at the moment so for the other 90percent it is a move of 30 to 36 and that is during the mornings rush to jump on the train with professionals taking advantage of peoples excitment. they will sell off later this week and the price will fall again.. i do agree it is good though beter than anythink for quite a while. it is very very good for you and other who bought in the last month but dangerous for anyone buying this week.
QF - agreed I won't be taking up their offer either - if NNPC, or whoever replaces them, continue to promote the development of their marginal oilfields, as we have recently witnessed by them paying monies owed for previous years production, the resulting increased production will lead to a higher income from OML16 oil/gas rather than, as we are at the moment, relying on income from short term loan notes, in this respects it is good to read that our percentage ownership in OML18 has recently increased.
...the gentleman poster who went by the name of Brotherseven? I need to discuss that case of pinot noir....
Afamefuna - may i very politely suggest that you have no idea what constitutes a good deal for anyone apart from yourself. There are a few long suffering shareholders for whom the move from 30p to 46p represents a tiny improvement in the overall loss they have taken. There may be a few for whom this is the first step of many as they believe the % ownership of Eroton gives them access to a world-class asset, notwithstanding the problems of getting paid for work done in 'frontier-mining'. This board,or a few members of it, have got this story in recent months pretty much spot-on despite all the negativities thrown at us from all sorts. Indeed, if I remember rightly, you were just the other day decrying the performance of the SP...
With 500m shares and market cap of £150 m that give a share value of 30.6p. If they buy up 50 m shares then that give a share value for the 450m of 34p. So buy share up at 46p seems good, unless they expect share price to be driven up!
mr qf why not sell your 10 % at 46pennys and then buy them back at a cheaper price as you will probably be able to do that as only 10 percent of the company is deffinatly worth 46pennys. you will probably be able to buy at less than 46 and still have the same ammount to watch for a few years.
Yes good news. I'm in for the long haul so my initial reaction is that I probably won't take up the 46p offer.
mr pc1 you say but if every shareholder does that, then you will sell only 10%. of course every customer will sell their maximum 10% we would be stupid not to so it will only be 10% for each customer wont it. it is a good thing for 10% of our shares but the rest off the shares will not be worth 46pennys unless somthing else good happens.
Dear Afamefuna,
Don't let the facts get in the way of a good story! The company announced today that it will buy $30mm of its shares back at 46p. You can offer all your shares ...but if every shareholder does that, then you will sell only 10%. If, as per below say Tosca or Jite don't tender, then there may be not many shares at all for sale and you could sell a large majority of yours 9if you own any). However, I would be very surprised if many difficult months in getting SLE back on its feet if the major shareholder didn't want to take some chips off the table...but in this particular matter we know nothing.
Thank you Barbilly.
so shareholder can only apply this to 10% of their holding the other 90 going into a sort of rafful lottery that means you might or might not get more than 10%. most likely is brandon and tosca directors and other major holders will take up their full allocation and everyone will only get 10%.better than nothing though.