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Agree, this disclosure is clear market manipulation aimed at depressing the SP.
PMO should also be all over this not only with the FCA but with the media (they can do this discreetly) publicising what's been going on here. Best chance for us to gain is of the market smells ARCMs blood in the water.
TD needs to step up here and act to protect PMO and his investors.
Thanks for this. I'll send off complaint today and urge everyone else to do the same. Adds more weight. They need to know the strength of feeling about this. Rules are there for shareholders protection which must be safeguarded
Complain to the FCA
https://www.fca.org.uk/consumers/how-complain
I belive next week will be very very interesting and positive for all legitimate pmo shareholders..
Where would the share price be without this previously hidden short.
Would there be a ZAMA sale needed if Premier Oil was valued fairly.
They have had a huge impact on company policy in my opinion.
Many thanks for this. I'll be adding my name to the list of long term private investors complain to fca about this serious non comliance with the regulations. This cannot be ignored or brushed under the carpet. All pmo shareholoders need to act to protect our interests and uphold the rule of law
IMO this share should be suspended Monday, The gravity of this need addressing by the FCA urgently, the rules are there for a reason. Don't allow ARMC to close in a orderly fashion. Also an in depth look at some of the FT article's about the time of PMO's drop from circ £1.40.
Well done.
Does GS not bear some responsibility for this?
NSTAbz loving the fact the slimy shorter are in the wrong here, apreciate people writing into the FCA to complain, I plan to phone investor relations next week to discuss this subject. Hopefully they can Be penalised and costs them financially will be interesting to see the outcome here. Good luck everyone
Looks like they are in the doo doo
https://www.handbook.fca.org.uk/handbook/DEPP/6/6.pdf
A Hong Kong hedge fund secretly built up the biggest ever short position in the UK by taking huge bets against Premier Oil shares.
Asia Research & Capital Management should have revealed its bet to the Financial Conduct Authority in February 2017 when its short position in the North Sea oil firm’s shares went above 0.5 per cent.
But ARCM, which invests in distressed assets, did not disclose the bet to the watchdog until Friday last week – when it belatedly revealed that it had built up an enormous 17 per cent short position worth £132million.
Short-selling involves borrowing shares from another investor for a fee, selling them, buying them back, hopefully at a lower price.
The shares are then returned to the original owner, with the short-seller pocketing the difference.
ARCM’s huge short position – thought to be the largest ever disclosed in the UK – is understood to be a hedge against its $380million holding of Premier Oil’s $2.55billion net debt, which becomes repayable in May 2021.
Premier Oil agreed a crucial debt refinancing package in February 2017 when ARCM bought its debt and began shorting the shares as insurance.
The £132million short position does not mean ARCM has spent £132million betting against Premier Oil, but it does pay a fee for borrowing the shares. It means ARCM has some insurance if the shares fall and it suffers because it holds vast sums of its debt.
This is a rising concern when oil prices are falling, as they have done since April.
A source familiar with ARCM, which has not increased its short since June, said the company always hedges all its investments.
Even so, the short position is huge by typical standards. It is the largest short position in Europe by percentage of a company’s shares, according to analysis by Breakout Point. The second largest is CPMG’s 5.86 per cent short position in German technology company Aixtron.
Premier Oil and ARCM declined to comment. The FCA declined to comment on any potential penalty for ARCM for late disclosure.
The final paragraph above about FCA declining to comment is interesting. I have written to the FCA today seeking clarity on what action us shareholders can expect the FCA to take against ARCM for this late declaration. In the past such emails sent to them will be acknowledged but hear nothing back afterwards so I am not holding my breath, but I feel that if enough shareholders write to FCA and if there is press focus, they might take notice and eventually do something. Here is hoping.