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It's all good stuff.
We've worked some good stuff!
There's views, amongst analysts, the post deal price could be:
high 22.75
Low 8
That's all good stuff, you now have to decide is things feel bullish or not....
I'm chilled. Maybe you should chill out and enjoy the chat., enjoy the price discovery.
You are dominating the board with dozens of posts. Chill.
Ooops bad "typing".Needing an edit function again!Maybe you can replace the wrong words with what i meant! '.... future liability..' etc... etc...etc...Blame the booze!
Problem was didn't pmo buy assets and vastly increase their balance sheet liabilities at the height of the previous POO?They have good assets just over expansion, especially at the wrong time in the cycle can be a future asset if POO average goes down or doesn't increase.Now that issue has been put to bed.Some funds might still be selling out but the debt overleverage is dealt with now.Gearing should be lower i'm guessing.
It's a discussion board Tex, I'm enjoying the discourse.
Spamming hardly.
Hidden agenda? LOL How can there be a hidden agenda? I've been quiet clear in my position.
Don't you really mean, you don't agree with me and don't want to hear an alternative opinion?
- simple answer don't read it.
Devonplay, everyone is wondering why you have been a member for a couple of years and not really been involved on this board but now all of a sudden you are suddenly spamming about 10 times a day.
You just come across as having a hidden agenda and there is not much you can say in your defence is there?
Yes, I know you was, but you have to take the lowest estimate into considertion, if you don't how do you think about downside risk? How do you control risk?
Why should their outrageously pessimistic case be taken as the likely figure? Well, you could look at the long term chart, it's been in declince since the high of Feb 2011, or you could consider we are in the worst economic position of a generation..and the list goes on.
The more sensible question might be, why should you be outrageously optimistic?
Maybe you could argue, because there's strenght in the present share price....except there isn't, it looks weak and it feels weak too.
"PMO have some very good producing assets" but they strangley haven't been enough to satisfy credtors about the future of the company, and as one of the other commentators on here has pointed out before, they've been looking at the future very closely for most of the year...and you have to presume, that's why they've put the rescue deal together.
I was taking their best guesstimate. So 22.75 is the figure based on that. Why should their outrageously pessimistic case be taken as the likely figure? PMO have some very good producing assets and POO will go up if vaccines become available soon as indicated in today's press.
So if we apply the worst case Enquest model:
22.75/5b
Enquest worst case scenerio 1.5b
- well, step forward the guy who said he was waiting for 8p. We can see why now if he's a pessimist..
You appear to have missed this part:
"Even applying the values of Premier’s least-loved peer—Enquest’s deliberately late-life barrels—the newco’s market cap would be in a $1.5-2.2bn range." Ouch!
So, if the market is pessimistic, that could imply further downside. Double ouch!!
So that's 22.75p a share!
The analysts predict $4.9-5.6bn market value after taking off the remaining debt. So we're looking at 5.45% of say $5bn, which is $272.5m (£210m), compared to current market cap of £121m. If bondholders take some equity instead of cash it will be less. But it seems that PMO equity is significantly undervalued because of demoralised shareholders quitting!
"With the newco having net debt on completion of $3.2bn, this would translate to a market cap of $4.9-5.6bn. Premier’s shareholders would own 5.45pc of the newco—assuming the firm’s creditors take a maximum cash payment available (and a 25pc haircut) rather than opt to take shares.
Based on this assumption, the newco would only need to have a market cap above $3.4bn for the deal to be at a premium to Premier’s pre-deal valuation. Even applying the values of Premier’s least-loved peer—Enquest’s deliberately late-life barrels—the newco’s market cap would be in a $1.5-2.2bn range."
https://www.petroleum-economist.com/articles/corporate/ma/2020/no-golden-age-for-north-sea-ma-westwood
Playing for time. Just wait....BIG PLAN!
I can’t say much more...
Don’t listen to the doubters!! They want YOU to PANIC and SELL!
Don’t do that!!
This is gonna go UP!!!
They get a vote after the creditors approve the deal (or not), they vote first.
Credtors approve the deal, shareholders bless it (or not).
If the deal doesn't get voted through, the rescue deal put together by the creditors, then they company faces the possibility of a credit default and what that could entail.
If the creditors approve it, but the shareholders vote against it, the Directors can technically still ease the deal forward if they believe the company faces insolvency. The withdrawal of credit.
PMO has already breached it credit covenant, which got a furlough until the first week in November, what happens then and what extention is given is yet to be outlined.
If there's no alternative financing arrangement in place, then you have to ask why would they vote against it?
New here, am I right that shareholders get to vote on the planned reverse takeover? There must be many funds that hold shares , that don’t hold the debt. Why would they vote this deal, thru?