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You never know...could go to 165...or maybe a counter bid could emerge.
Think that is our lot unfortunately
oooh! aaah!
-- BB --
Dno have issued an RNS increasing their offer to 160. See ADVFN board
Quote from the DNO website: âWe are agile. We are flexible. We are resilient. We are DNO.â
DNO donât lack in confidence and I suspect they are not going away. It wouldnât surprise me to see them sit with a larger minority stake in Faroe Petroleum as long as they can get some Board representation. After all RAK Petroleum currently owns 40.45% of DNO and 33.33% of the delightfully named Foxtrot International LDC who operate in Cote DâIvoire. So mintorty investments are in the DNO DNA. Sorry couldnât resist!
Ii was having a look at the number of shares in issue and the volume of trades to see if DNO are likely to get anywhere near their required 57.5%. Something like 373 million shares in issue, and 57.5% of that is 214 million in round figures. The last figure of shares owned by or favourable to DNO was given as 43.1%, i.e. 154 million. That would imply that to get to the target, they would need to acquire an additional 60 million shares over the next 9 trading days (including today). That's about 6.7 million a day. Not sure what the current volumes are (and not all trades will be buys by DNO or others friendly to them) but if my figures are correct (big ???? there...) doesn't look likely they will get there.
Agreed, itâs going to be a difficult second half for the Faroe defence!! However they have played a great holding game over many months. GLAH.
I'm sure they are but the fact DNO already has >30% makes it particularly difficult; they would immediately vote against any takeover which means you need the vast majority of the other 70% to agree to force DNO's hand.
DNO's brokers (Pareto) sent out an email to institutional holders yesterday stating that they are block buyers of stock - they are legally entitled to buy below the 152p price, so this should prove a floor to the price over the next couple of weeks.
I think their game plan is to pick up as many more as possible under 152p, then up the bid to, say 165p. Think, unfortunately, that this would be enough to get institutions on board.
I'm thinking that...given tbe board are completely opposed to this lowly offer, shouldn't they be putting out a few feelers to see if another party is interested ( Cairn maybe?)
Had DNO not already made an offer them when they reached 33% then they would be compelled to so the mandatory applies to DNO not us
Nope donât think so. Usually the âsqueeze outâ ie. compulsory purchase of shares is when the bidder gets to 90% acceptances.
An offer becomes mandatory when the bidding co has more than 33% of the Target
Is the purchase of 1 share not a sign from the mm's that something is a foot?
The Board reiterates the following observations in relation to the Offer timetable, as established by the UK Takeover Code:
⢠DNO has until 27 January 2019 to improve or otherwise change its Offer, should it wish to do so
⢠DNO has until 10 February 2019 to achieve sufficient acceptances for its Offer to become unconditional
⢠If the Offer at any time becomes or is declared unconditional, DNO must keep it open for acceptance for at least another 14 days
What is the procedure here? I'm certainly not accepting their derisory offer, but what happens now that they have made it "mandatory"? At what point do we not get any choice in the matter? Is it 90% held or controlled by DNO? Is changing it to mandatory of any significance to us PIs?
Judging by the DNO comments this morning if they don't get control, the Faroe directors will need to get a supply of hard hats from the rigs just to attend the Board Meetings!!
This is a small (but real) test for U.K. Institutional shareholders. Back a proven mgt team or take the DNO cash!!!
Close call....
Got offered 154 to sell just now. Hanging in as looks like a wall of buys coming in.
DNO are tightening the screws. A raise at the end of the offer period may get them over the line.
There is more left in this game yet. I am holding to see if we get near the ÂŁ2 offer as already holding a decent profit. Its all about who blinks first. I have no loyalty to either as we are all here to make money. Harsh but true.
Absolutely. They keep trashing Faroe but they have extended their offer by 14 days and have received acceptances for a further 14%.
https://www.investegate.co.uk/dno-asa--0mhp-/rns/extension-of-cash-offer-for-faroe-petroleum/201901030700100904M/ DNO have extended their offer for 14 days. An aggressive rns released.
Would not surprise me if an RNS pops out at
7.00 am
Ok I assume DNO got very few acceptances by 2pm today from the other Faroe shareholders. Plus I understand DNO have to question the credibility of the assumptions in the Gaffney Cline CPR statement (oil price assumption optimistic and is G&A, Corp overhead and southern gas decommissioning costs included in the NPV etc).
However they also claim 1. The Faroe crown jewel project has been given away in the Equinor swap deal plus
2. Brasse developmemt project (35%) of the total company value is 2 or 3 years delayed and commercial agreements not finalised, Brasse East is not there etc they are basically questioning its viability.
Why the devil do they want to buy Faroe then?
Lunchtime tomorrow for the DNO bid deadline acceptances at 152p per share. No way will DNO achieve 57% acceptances IMO. Bid will probably be extended and perhaps they will raise the offer price in spite of their harsh words about Faroe management, strategy, field development progress and decommissioning cash availability! I know itâs a game, but youâve really got to wonder why DNO want to buy Faroe so much if they really think itâs such a badly tun bag of nails!!
Sold half and bought back yesterday..... as Corporal Jones might say . some like it up em... figuratively speaking that could turn out to be myself !!!!!!
GLA - even though I agree with DNO that FPM management have been self serving, this broadside will surely make them look to their shareholders if they survive.