Proposed Directors of Tirupati Graphite explain why they have requisitioned an GM. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
With all the claims that there is more money to be had from Capricorn, I wonder why there is no rush to buy shares and the share price is wallowing.
If there is a value of 300+ or 400+ in the share why is is still around 240 and not heading to at least the value that the initial deal with Tullow of 270.
Something seems bad in the state of Capricorn or there is no real faith in Palliser.
You would think that before the institutions (Palliser etc) voted to remove the BOD, they must be confident that the new directors they have endorsed, can create more value for the shareholders. If we believe what the old BOD said, they spent many months evaluating options and proposals from various counter parties, and the New Med deal was the best that could be achieved.
This suggests that the new BOD know something which the old BOD didn’t (which is possible), or, the new BOD will do a deal that the old BOD did not want to do. Many of the institutions will be shareholders in other O&G companies, so they will be privy to other O&G companies strategic thinking. They may therefore be able to influence a deal with another company which the old BOD were not able to do, or were unwilling to do.
One thing is certain…our new BOD are not starting with a ‘blank sheet of paper’. They will have a shrewd idea of which deal(s) they want to do, and have a roadmap to achieve them..
If they didn’t think they could achieve a materially better outcome, they would just have endorsed the BODs proposal, taken the money and sold their shares.
The actions of the institutions suggest that there will be a better outcome for ordinary shareholders… Does anyone have a different view?
Loch - the problem is that Capricorn will need money to keep Egypt going. It is very capital intensive. Egypt also has a long history of not paying up money, so there will need to be a buffer.
It will be interesting to see what dividend comes out, but I will be amazed if it is anywhere near the $620million that was earmarked for the NewMed deal.
Deltic (our partners in 5 SNS blocks) have just announced one of the largest natural gas discoveries in the Southern North Sea in over a decade. The Pensacola discovery is not that far from our blocks, so could bode well for our blocks.
I don’t know what value ( if any) our previous BOD attached to these blocks, but it must surely have increased on this news. Also, Equinor said this morning that they would not be able to increase gas flows to UK / Europe as they were at max production, so there should be a greater urgency to develop UK gas.
Perhaps the BOD will decide to keep our company going (and just return the India cash to shareholders) rather than embarking on a fire sale of the company.
Interesting times…
Hi, lost the thread here.
So, II's don;t want NewMed deal which means reported large cash payout as divis won't happen?
BoD which avoided paying out Modi's billion has resigned en masse?
II's seem to be in control?
Any thoughts on what benefits the minnow PI's here? Probably the princely sum of F*** all I guess?
Seems SP has been drifting down since the II's kicked off.
Having been here when CNE were down to their last tank of fuel in Rajastan and enjoyed the subsequent meteoric rise, my fanatical faith is CNE achieving anything for the PI is on the decline rapidly.
30%+ of the stock is held by the hedge funds, once they decide to sell then it will be volatile.......!
I'm hanging on in here, was really surprised how comprehensive the vote was. Somebody must think there is more value here or maybe that the Israelis will tweak the deal if nothing else.
The alternative case is that if a CEO with 27 years experience in the business thought there was significantly more value he would have probably said so, unless he just can't wait to put his feet up! I'm surprised the share price isn't more volatile.
Another positive sign.
Barclays raises Capricorn Energy target to 275 (238) pence - 'equal weight'
The end of an error. (Puns intended).
Onward. And upward.
Good luck to the new Board.
Selling a small, non-operated “asset” in Egypt, a capital intensive “asset” at that that requires constant drilling to keep oil & gas production levels flat. God knows what discount rate the small population of possible buyers will apply to that cash flow??????? I shudder to think. Let’s hope for some political stability and no sudden fiscal changes in Egypt??
They followed him to the end of the earth to see if he fell off. Lo and behold they all did.
By the way, anyone seeking compensation can take it from the money left on the table at the Court of Arbitration.
PJ's on tomorrow, back on the Peloton bikes.
Please tell me the £53 mill worth of new shares have now been cancelled. I will be gutted to see my share valued reduced because of this.
Please tell me the £53 mill worth of new shares have now been cancelled. I will be gutted to see my share valued reduced because of this.
https://www.londonstockexchange.com/news-article/market-news/update-on-proposed-combination-with-capricorn/15808766
In view of these developments and the resignation of most of the Capricorn board members, the Partnership estimates that the probability for the closing of the Transaction has significantly decreased.
I dont see how that's relevant. Tullow are not the same company now, I think you'll struggle to find anyone who works there in a senior position who did when they were based in Dublin.... The Tullow deal was not a good deal IMO, the idea was very good (I think Jubilee is one of the best Africa assets out there, and someone with cash could transform it) but the deal terms were very poor for CNE.
I completely understand that the board lost confidence, but my point has been and still is that the merger is a new board, and most importantly of all (and this is mainly why I exited), not doing it puts the dividend of $620million into doubt, that dividend may now be smaller (maybe not but it 100% has more risk now).
I'm not attempting to stir, I'm merely stating my views based on my research, my personal situation and trying to make sure you see the who picture and not just "the current (or old now) board vs investors".
NewMed is still a good deal IMO, it does depend on your risk / reward appetite though. In these difficult economic times I prefer less risk. As stated I'm an observer now, but i've done a lot of research and modelling on CNE, so I'm very interested to see how this pans out.
“look at how the other independents have done - Tullow for example. They have massively destroyed value.”
So… you’re In favour of something which two major proxy advisors have come out opposed to, and you use as an example the massive destruction of value of the very company that the current Capricorn board wanted to merge with just a few months ago?
I think the bod are leaving early so as to negotiate departure payments from their current friends!
Outgoing board members don't seem to need to wait to hear the decision of the 1st Feb GM vote.
Latest rns suggests palliser are taking over having forced resignation of old bod. Good news imv.
Deckchairs are being re arranged at board level on the Titanic....
Rags,why are you asking me to solve all the companies future problems?
I have gazed into my crystal ball but the batteries seem to have run out.
All I know is that there is a growing number of II's who are not happy and I have dared to voice my opinion on the leadership of this company.
All I want is a reasonable return for my risk. Same goes for all the other companies I invest in.
A straightforward dividend return, post arbitration, would have kept me happy.
If you are no longer invested, does that mean you are merely being a sideline agitator?
This $620million dividend that is alleged to be paid to shareholders. Is this 620 Mill to be paid in total to shareholders?
sounds too good to be true for this clown show of a company
They managed to avoid paying us Modi's billion
Simon doesn't have a non-executive role in the new company? He has no role at all!
Well the poor mites just need a little extra blood to suck out before it's all gone. Cause what's Simon going to get out of his new nonexecuetive roll probably another Mill a year. It is so sad for this board of vampire's.
Grumpus - I'm worried your dislike for the board is skewing your judgement.
Yes new shares will be issued for the new company and the board will be given money, but in return shareholders get a $620million dividend and 10%+ of a fantastic new company (run by a (mostly) different board).
The alternative:
- We are stuck with what we have (which pre-merger announcement was valued ~£2)
- We will possibly (likeley?) receive a smaller dividend (tell me where the new board will get the $120 million from? Will they also sell the contingent rights for SNE and the North Sea? If do then our income and survival will be entirely linked to Egypt (RISKY!).
- CNE will become a small cap Egypt only player and fall out the FTSE 250.
The above in my opinion is NOT something I would want to be invested in. I'm no longer in here, because of the risk that the hedge funds get their way. Keep in mind the hedge funds probably care less about individual investors that normal long term holders. They have already made a tonne of money here (they got in at £2) and now they are probably just after something to plaster on their website (we took over a FTSE 250 company). They will exit ASAP on the back of this and anyone wanting to hold long term will be exposed to a very risky and small company.
All my opinion. But dont let hatred cloud your financial risk reward judgement. I made quite a bit of cash here (held from ~£1.40) so I'm not emotionally involved here. But if you are a long term holder - look at how the other independents have done - Tullow for example. They have massively destroyed value. CNE over the same period hasn't made any value but if you back calculate the share price and account for dividend pay outs, they havent destroyed any value either. The adjusted value has remained pretty flat.