Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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As far as I know John, the dividend payments for each company run as per norm until completion of the deal, therefore there should be no additional benefit in either camp. The 50% or so premium that Shell offer is based on a very low BG price - 890p and doesn't take into account the underlying value of its assets, hence the inflated price - Best regards
I was just wondering whether the dividends shell shareholders would receive between now and the deal ,would account for some of the apparent premium ?
Thanks very much for that. Most helpful.
Good informative posting commonstock . I topped up yesterday, its still a long way to go and with a couple of hurdles along the way (namely regulator and shareholder approval) but the fundamentals are good here. Even if the deal doesn't get passed these are solid companies in their own right - good luck
Centurion07 The deal is yet to be approved by regulators so it is still possible that the combination will not occur. IF all the conditions are met and the deal is going to go ahead, the companies will make an announcement of when the transaction will complete and they will probably give a date (which will be "ex" something or other - like an "ex-dividend" date) and you would need to buy shares on or before that date to be part of the deal and receive your cash and RDSB shares. So in short, you can still buy shares now and they will be part of the deal for which you'd get the cash and RDSB shares IF the deal goes ahead. At the moment there is an interesting potential opportunity - if you want to buy RDSB shares, you can instead buy about 2.25 x more BG shares and if the deal goes ahead and the share prices of the two companies remain the same, with the cash return, you'd have picked up the RDSB shares at an approximate 15% discount and you'd be getting a 7%+ yield. This is known as merger arbitrage - the 15% discount is there because there is still some uncertainty about the deal going ahead. IF and when the conditions for the deal are met, the price of BG and RDSB should narrow. This is just my opinion and each should do their own research, but I believe the deal will go ahead and I think Shell will be a better investment for it. I have already picked up some BG shares specifically to acquire further RDSB shares and I am thinking of buying more. BG and Shell have said they expect the deal to complete in Q1 2016, if all the conditions are met. You might want to set an RNS email alert which you can do on the London Stock Exchange website (I suggest you do RDSB rather than BG as BG has got loads of irrelevant Form 8.3 RNS things going through every day at the moment). I hope this helps.
I'm a total noob with regards to shares so forgive the possibly silly question; with regards to this Shell deal and the 383p + 0.4454 Shell shares per BG share, how is that calculated i.e. is that only for the shares I held on the day of that announcement or is it shares I hold on a date nearer completion or something else entirely?
BG have a useful posting on their website and I have copied an extract from it to give you an approximate idea of what is on offer here. As for time scales etc. these will be a bit sketchy as the regulators have to approve the merger but at present I believe they are talking of Q1 2016. I hope this helps,- Best regards:- RECOMMENDED CASH AND SHARE OFFER FOR BG GROUP PLC BY ROYAL DUTCH SHELL PLC Summary The Boards of Shell and BG are pleased to announce that they have reached agreement on the terms of a recommended cash and share offer to be made by Shell for the entire issued and to be issued share capital of BG. • Under the terms of the Combination, BG Shareholders will be entitled to receive: For each BG Share: 383 pence in cash; and 0.4454 Shell B Shares1 • Based on the 90 trading day volume weighted average price of 2,170.3 pence per Shell B Share on 7 April 2015 (being the last Business Day before the date of this Announcement), the terms of the Combination represent: - a value of approximately 1,350 pence per BG Share; and - a premium of approximately 52% to the 90 trading day volume weighted average price of 890.4 pence per BG Share on 7 April 2015.
I hold shares here and I will be honest I have not done a great deal of research. So can someone help me with when the sale will go through, when are we expecting to get Shell shares and when will be get some payment?
Hang a Hoodie: For Sir John Hood of BG Group, that level of support represents a motion of censure. His remuneration committee approved a £12 million pay package for incoming Chief Executive Helge Lund. Shareholders complained, so BG fixed a smaller sum. Now some are bridling because the sale of the gas giant to Shell means Mr Lund will get an estimated £20 million for bungeeing in and out. The City is thus wagging a finger at Sir John for two things. First, for lacking the telepathy needed to discern its feelings about Mr Lund’s first golden hello. Second, for an unintended consequence of a takeover it likes. And to think Westminster is accused of being divorced from reality.
14 GBP would have been a fair price for BG even with oil at 50 Bbl. Looks like Shells management are on the ball getting BG for the price they paid....and Shells shares should come along nicely in next 12 mths.
http://www.dailymail.co.uk/money/markets/article-3055418/Shell-takes-hit-3-2bn-UK-companies-profit-warnings-up.html Might be a trade back in here this week if RDSB drop on this.
I topped up last week. Definitely good prospects medium/long term. T/O or oil recovery should push this north on the charts in time.
Worth topping up, even after the price surge? I have a couple of grand that I want to tuck away for the medium term. Upside SP potential + decent dividend + lowish risk sounds OK to me.
pretty expensive currently to buy oil volatility - could consider buy bg + sell (atm) oil calls?
Arbitrage trading of assets is smart covering for clever traders,,keeps your head rocking from side to side,gives me a headache,could manage ok with 2 brains ,I'll stick to my longs.I'm long on 2 oilies,BG and HTG,both will do well when crude price recovers. GL.
Arbitrage opportunity?? Buy BG And taken 6 months put option at 55$ on oil.. Any thoughts? I have auite a few but thinking of building at these levels...
BG definitely being flogged off cheaply .BG sp has been as high as 15 and a half quid a pop in 2011.There has been a fistful of upgrades of positions and sp predictions , upgrades from hold to buy and sell to buy too and sp's from 1226p to 1460p. I'm in here ,there is more to this BG story yet. Oil price gains will reflect in BG's sp.
I don't see how shell have overpaid as its only 3.83 cash .and both companies are reliant on price of oil/gas .a lot being made of 90$ oil if we get $90 oil then shell have the bargain of the century (and last century)
http://www.telegraph.co.uk/finance/comment/jeremy-warner/11528990/BP-left-stranded-by-US-vilification-as-rejuvinated-Shell-storms-ahead.html Details on reasons we are now nearly £2 off the offer price
Thank you for going to so much trouble you have a very apropriate sudo name, as i was interested as i did buy the whole alowance for each of my two daughters and my wife also myself , We must have fallen out of love with them on the way as for a long time now i do not know when or for how much we disposed of them for.So much has gone under the water since then .But i do remember saying i was going to keep them forever.
The thing that bemuses me about launch is that they are now stating that investors should be prepared to lock their investments away for 10 yrs and not 5 yrs Btw sold bg weds am bought back pm n bought shell b
ah, ok, gotcha.
Aquired a few BG yesterday.Wow up 8 pennies already.Joking aside,I could not resist moving in on these ,price has dipped somewhat since news of buyout flamed out,BG has giant gas and oil reserves worth billions,personally I think BG board are selling BG on the cheap to make millions quickly themselves. There are a lot of cash rich Chinese companies who must be looking at this deal,they may join the party,maybe more will.I have a gut feeling that the BG story has further to run.Even if this deal turns into a duster and shuv's BG's sp off a cliff then I will be able to add low priced shares of a great energy company to make a killing on. ,
No I meant I'd picked up some BP.!