Gloomy, concentrate on company value as determined by the market at any point in time. First no. of shares in issue x SP will always equal mkt cap. Second the market will have priced in all known information, including dilutions and consolidations. Its frightening that so many posters dont seem to understand this fundamental.
I will happily sell all of my shares to her If she wants to buy it from me rather than seeing this bunch of bastards running this company again! Let her buy the company, take it private amd run the company like the way she is running the other one!
£70M, **** me! My losses looks peanut beside it!!!!
Go ahead Mrs General, buy entire Afren, u've the money and power to do so!
Afren tells its investors to take ‘bitter pill’ 21st June 2015 http://goo.gl/ovFs1s Afren has proposed an equity swap to reduce its huge debt pile, under which shareholders would lose the majority of the value of their holdings.
THE chief executive of Afren flew to Nigeria to secure the support of the wife of a retired general for the beleaguered oil explorer’s "do or die" rights issue. Danny Fortson Published: 21 June 2015 Comment (0) Print Plunging oil prices and executive pay deals sent Afren into crisisPlunging oil prices and executive pay deals sent Afren into crisis (Alamy) THE chief executive of Afren flew to Nigeria to secure the support of the wife of a retired general for the beleaguered oil explorer’s “do or die” rights issue. On Friday, Afren issued a prospectus for a financial overhaul that will dramatically dilute investors who have already seen their shares destroyed by one of the biggest collapses in the London market in recent times. The company warned that if shareholders vote down the £49m rights issue — key to the debt reduction plan — it will likely be forced into administration. Afren was worth £1.2bn last summer before the collapse in the oil price and a scandal over undisclosed pay deals for its top executives sent the company into crisis. It is now worth £18m. In the midst of the meltdown South Atlantic Petroleum (SAPetro), a Nigerian rival controlled by General Theophilus Danjuma bought a 7% stake, stoking expectations he might make a move for the whole company. He is worth $700m (£441m), according to Forbes magazine. It is understood that Alan Linn, Afren’s new chief executive, travelled last month to Nigeria, the heart of Afren’s operation, to meet Danjuma’s wife Daisy, vice-chairman of SAPetro and a sitting senator. Sources close to the situation said the talks were positive but that she did not offer a firm commitment to support the rights issue. Afren said on Friday it planned to forgive some loans, issue new debt, and raise £49m in new shares. The deal will leave current investors with no more than 15% of the recapitalised company. Danjuma is thought to have lost some £70m on the Afren bet, having bought when the shares were worth about £1. They closed Friday at 1.6p.
Now the battle for Afren truly begins. The likes of seeplat and the general have been waiting for the final offer made by the bod, the Friday rns and prospectus is it. The visit to meet the general's wife is part of their road show to promote the offer, if we are mistrusting and aggrieved with this offer can you imagine what the general who holds 13% of Afren (I would hazard a guess significantly more now) bought at upwards of 50p must be feeling. Afren and the bod need the general's vote and political support, his power and influence in Nigeria could quash this deal, they need his support hence the road show, they will be reaching out to other major investors. This is far from over, and now that the offer has been made we will start to see the responses from previously interested parties. From the details of the prospectus I cannot believe the general who is worth $600mm and a passionate Nigerian will condone the destruction of Afren as a major Nigerian asset.
The next month is going to be truly epic, at this price, and given the offer on the table, we may well see our prior interested parties showing their hands, here we go...
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