certain assets of great value would it not be prudent to sell them? using the cash to pay down as much immediate debt as possible whilst of course retaining enough to operate or! are they waiting to pick up the assets on the cheap should the BH. gain full control and ownership.
Just spoken to Santander who hold my shares regarding voting by proxy at any EGM or AGM. Was informed with 1 weeks notice that this would pose no problem what so ever.
Afren was the jewel in the African crown and the darling of the London Stock Exchange. 7 months ago, the company was valued at about £1.6 billion (sp 145p). Now its valued at £35 MILLION (3.2p). Thats a 98% drop in value. So what happened in the trading performance of the business, their ability to make money. OK oil price dropped by 50% but the SP of most oilers followed the oil price % down directly. So the relative SP for afren now would be about 70p. But today we are still 95% down on that value.
So what else happened to affect the business trade. Bader Rash reserves down graded, so reserves down. That would affect the SP but there was no real production from there anyway so no revenue lost.. What else.... ERR nothing, but new assets coming on line promising more production, oh sorry thats a good thing to compensate for Bader Rash?
So why had the SP crashed from 70p assumed to 3.2p. There is only only one answer, complete incompetent management. The prevoius management badly handled the fraud and should have never have happened. Over spending on the capex budget time scale left the business short of liquidity to trade, The announcemeng of the funding shortfall. The collapse of the seplat talks, The acceptance of a rediculous BHs offer. Entering into a poison pill agreement with the BHs in the event of a NO vote Thats why the SP is where it is.
But .. Afren has a much greater value to a buyer than just its asset value. They have billions of barells of oil reserves. Exploration already done Oil wells and platforms all over the place that are up and running pumping oil. That costs billions to develop and put in place. They have a work force and all the required infrastructure. They produce cash flow and profit.
We need to hold out for more than a few hundred pounds.
This is only my view. Do your own research please. All statements in this post and previous posts, referring to any person or persons are on the basis of being alleged.
Sherloq, It was the duty of the BoD to inform the shareholders to whom their responsibilities (in theory) rest in respect of any offer being made. We should not have to dig out(thank you for the seplat bit) from othet sources. The problem is that Seplat were not given a further extension and possibly put in a bid. Once that happened it would have to be put to vote. So it appears prima facie that termination of talks were premature and possibly wilfully neglectful?
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.