the Market hasn't reacted yet, we have survived from brink, once it starts to react we have seen many rise big who survived. This is AIM the MMs will start the movement very soon, we all know how this moves in a instant!
Hi. I am on vacation and occasionally glance at this board (and others) these past 2 weeks. I have read some good comments, but mostly, utter rubbish from people who clearly have not joined up the dots between the EGM circular and the 2013 Annual Report, either through inability to read the numbers or to deliberately undermine the basis of the transaction. All of my research is based on the EGM Circular and the 2013 AR. It is actually quite simple as I see it.
IMVHPO, this is the summary of the deal.
Sefton EGM Deal Summary $M Notes
Cash 4.47 After SER repays BOW and other s-term debt ($3m over 3 years) Asset Impairment Liability 1.9 Transferred to Tapia LLC (Note 13) Debt Repayment 3.7 BOW Repaid in full Minority Interest 1.375 20% Tapia LLC that SER retains
Total Deal Value to SER 11.445
The Total Deal Value is £6.73m without Kansas @ $1.7 = £1 MC 4.7.14 of SER is £1.22m (0.155p mid price) SP with this deal and without including the value of Kansas assets, the SER SP should be 0.855p mid price - 0.8p bid or 0.9p offer if the EGM Resolutions are approved.
If you want a more detailed breakdown, visit the link below
I normally do not offer an opinion about the SP. For me, given the circumstances and the manner that the BOD and the NOMAD has conducted itself since Jim Ellerton's departure from the Board, this deal appears to be the best that is being offered to shareholders. I have no idea if other deals were offered to the BOD and if they were better or not. As proposed on the EGM Circular then this deal allows Sefton a chance to start to develop Kansas pipeline and some wells without the Tapia baggage, despite the initial reduction in revenues and attendant costs. This was just strangling the company. Failure to agree EGM Resolutions = wipeout and for the vultures, an ultra cheap buy from a Chapter 11 situation, again, IMVHPO.
Hawker (supported through Sara Creek and Crest Petroleum -read the SEC 8k filings yourselves folks) seem to have prepared for not just the cost of the deal and the assumption of debt and asset impairment liabilities, but further funding for capex to increase production in a way SER failed to do for so long.
At least this deal offers shareholders something, which hitherto had not been visible for months. It is better than nothing at all.
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