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ohh yes CA.... the moral guardians.... bursting with sentiment .... frequent posters on mumsnet ....
Continued.
get value for money should there be a takeout.
I agree with adoubleuk CA are not increasing their stake to take over the company they will want a director on the BOD and the removal of certain directors.
However, the same cant be said for Kerogen they have the know-how, the personnel, and plenty of Chinese money.
They removed their director from the BOD so there is no conflict of interest, and sent the SP into a downward spiral by announcing their 16% stake is up for sale.
There has been no evidence of Kerogen reducing their stake so it makes one wonder what they are up to.
Maybe CA intentions of increasing its stake and getting a director on the BOD is to spoil the party and make sure shareholders get
@Notaflipper - Your summary covers my thoughts around the purchase. Brent soaring late in the day yesterday after our markets closed and holding this morning. Expecting a lot of buying today.
Still stand by the buy out from a mid tier peer - Chrysoar like I have said multiple times is my bet.
Morganna
“ best option is to utilise both the decently increasing cashflow, and ultra low interest rates available in current global borrowing friendly environment. ”
1: exactly how do you think they could utilise the cash flow? - and still be on track to repay the debt?
2: it’s irrelevant what interest rates are if they cannot borrow anything until the current bondholders are repaid or agree to change the bond terms...
I understand your frustration. , but suggesting they do something they cannot actually do is not the answer.
CA could if they wished call an EGM and remove the Board, and put their own folks in, but they would also receive the same legal advice as the current bunch.. it’ll be hard to find directors who will knowingly ignore the legal advice, although they could change their broker nomad if they want a different answer from them.
Or they do not have any more cash available
They're going to take action against the board. They are balls deep at this point, but buying in is cheap as chips.
Perhaps another question is why have they not been continuing since Friday, that is my confusion.
Thinking about it logically the reason why Crystal Amber would look to increase their holdings are:
1) Reducing their average below that level of a distressed T/O
2) Making a potential hostile TO of their own
3) Calling a EGM and voting for a change of the BoD
4) Because they do not believe the CPR, either due to relations with the current BoD or because of internal technical analysis
The timing of the additional purchase is significant as logically one would have awaited the suggested dilution as per the kitchen sink RNS. So the fact that they have purchase 52m+ shares now believes that there will be no imminent dilution.
However if you look at the potential reasons 1 to 3 above, then my confusion comes as to why the buying has not continued into early this week. The daily trading volume has been tiny and hence the still depressed SP. Although some solidifying of the bond prices has been noticed there has been no change to shorts. Again confusing you would have thought. Unless CA have just temporarily halted their share purchase scheme you would have thought given Reasons 1 to 3 above they would just continue whilst the sp is cheap to get as low as an average as possible before shorts closed or PIs became emboldened to repurchase.
The only reason I can think of for temporarily halting is that either:
1) They consider there average (probably circa 9p now) low enough
2) They have enough votes, potentially with a tie-up with someone else, to either vote for a TO or otherwise vote off the BoD
Best that I can work out. Stay strong!
Any take a guess at why CA have increased their holding in Hurricane, if Hurricane are going to the wall? Other than averaging down and hoping to bail out on a spike, I don't get it. Answer's on a post card pleased.