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The document is a lot of reading but it states that in the event of the offer not being accepted the share certificates will be returned. The share certificates don't go to ENOC anyway, they will go to Capita and held till the result is known.
Having read through the offer documents I see that they want you to send in your share certificate with your acceptance of the offer. Does this mean that, regardless of whether ENOC reach their majority target, they will now own those shares and have to pay the offer price of £7.50 to those who have accepted the offer and sent in their share certificate? Sorry if it seems like a daft question but I am a novice in these things.
as of yet i have not read the offer docs normal is 1) sell the shares on the market 2) accept offer ( return docs and share certs as requested on the offer docs ) 3) reject offer ( do nothing ) 1) you get the money straight away but the price you sell at will be lower than the offer and a sell fee will be deducted 2) you get a cheque as is stated in the offer doc 3) should the offer go compulsory ( read the offer docs ) you will have to accept you might also have to wait for the proceeds should the offer not become compulsory you maybe left with your shares they might not be easy to trade ( i say might not ) this means you could possibly have to wait for another offer from enoc DYOR
If that's the case, what's the advantage in sending in the acceptance form and share certificate now rather than wait until your are contacted after its gone through. Seems you lose nothing hanging on and doing nothing at this stage.? clarification would be appreciated.
Essentially that would count as you rejecting the offer. If the offer was accepted by the majority then the buyout would go ahead and I suspect you would then be contacted to send in your share cert and then be paid out.
As I understand the £7.50 offer has been rejected by a couple of large investors, does that mean there is likely to be another offer made? I'm happy with the £7.50 but obviously would like more! So what happens if I don't send off this form and share certificate? By the way I'm a very very small shareholder.
so what happens if i hold on to my shares and the buy out is accepted,do i get the buy out price ?. Have been buying and selling dragon oil shares for at least 15 years but never been involved in a takeover situation.
Hi TT12,nice holding you got there for your initial investment, yes the paperwork is guiding towards selling but Baillie Gifford ( and others )don't like the offer price. Me ? well after holding for 18 years I would jump ship on a great return for £250, just peed off I haven't got the original share cert which Capita will "kindly " do for £90 + £55 admin. Both my banks won't sign the indemnity form ( service eh ?) Have you had divi's though ? I am trying to see if I can claim back the 18% witholding tax paid per divi off Irish Revenue, like you said thought this topic would have been buzzing. My original purchase/ tip went right around the financial services industry which I used to work in, and loads bought these shares on the strength of it K
TT12 Don't bank or spend your money yet ! There was a rights issue quite a few years ago so the value of your holding was changed into new shares e.g I initially bought 12500 old shares @2p each but after the rights issue the holding went to 500 new shares. I am sure there are more qualified people out there will give you (and me ) more in depth info
I like many bought these shares yonks ago before the rights issue etc, I have the original Barclays Stockbrokers contract note for the OLD shares of 12500 purchased ( wish they were they new value ! ) which now equates to 500 CURRENT shares and a Dragon Oil share cert for a further 49 purchased subequently I receive divi's for my full 549 holding will I still need a duplicate for the 500 holding if I sell on their offer of £7.50 per share ? I did speak to the registrars in Eire but got a brusque East European who " answered ? " my query.... hmm On a second issue as a basic rate uk tax payer will I receive our sale proceeds NET of the 18% Irish witholding tax if I decide to sell ? Thanks Kevfp
Address is Capita Asset Services (ENOC) Shareholder Solutions P O BOX 7117 Response paid Dublin 2 Ireland
MalcolmM, surely to God you are not going to accept this pathetic offer. The big institutions all say that the offer is significantly too low, and they are asking for an increase. You only need an envelope IF you are going to vote YES. Otherwise, throw the paperwork on the fire
Want to return my acceptance form but no self addressed envelope to return it. Can someone please give me the correct address to send it if you received your form with an envelope. I know that there is an address printed in the form but I just want to be 100% correct. Thanks.
Do I have to accept the offer to sell my shares in Dragon Oil
I would think if the shares are not in an ISA then you may very well get stung for tax. You have a capital gains tax allowance of £11,100 then any profit less the cost of buying the shares is taxable at either 18 or 28% depending on your own tax bracket.
Advice please. I hold a considerable amount of shares in my name but the shares are actually for a group of 7 or 8 people. Would I be stung for lots of tax if I sold them or because it's a group purchase wouldn't have to pay anything. I really don't know much about stocks, shares and tax so any advice would be much appreciated. TIA
Dawn you will get something in the post shortly detailing your options - if you are receiving dividends then your already in their system and one option will be to wait and get paid off them after its sold.
Hi, I bought DGO shares many years ago, I have dividends when due so know I have 384 shares with this company, I am thinking of selling them but can not find any certificate as such, can I sell without this and if so, how do I beging please? Thank you in advance. Dawn. x
If the sale does not go through which might well be the case then the price will crash back to the £5.09 it was before the ENOC offer. This gives the opportunity for a gamble by selling now at the £7.26 range with the hope the sale fails and buy back in at the £5.09 price having made a nice profit.
The share offer from ENOC is £7.50 per share and the actual price has never gone over this.
You and me both, especially as the share price is at this minute shown as 726 higher than the offer price?
I am a complete novice at share dealing. Received my letter from DGO but really not sure what to do next?
Yes ENOC are paying that sum but it is for 48% of Dragon Oil as they already own 52% of the company. Not sure it is a good price considering the money we have in the bank.
I have just received the printed details of the proposed buyout. There is one thing which I do not understand. The paperwork says that ENOC are paying £1.7 billion. Then it says that Dragon Oil had, as at 31st March, cash of £1,243 million (this figure has probably changed in the last 3 months). Does this mean that ENOC are effectively paying £457 million? Is this correct?
Dragon Oil: minority retort: Dragon Oil drills for its oil where most do not, Turkmenistan. For those keen on this central Asian country’s hydrocarbon potential, the company’s shares provide a scarce direct investment opportunity. That perhaps explains why its largest shareholder (54%), the Emirates National Oil Company of Dubai, has repeatedly tried to buy out the minority investors. On Monday, Dragon Oil accepted a cash bid from ENOC at 750p per share, 47% above the undisturbed price. It makes the point that Dragon Oil has been improving production in recent years using enhanced oil recovery, which involves pumping water into the oil reservoirs. Dragon’s output by 2016 should rise by a third from 2014 levels, to more than 100,000 barrels per day, says FirstEnergy. Baillie thinks there may be potential beyond that. It points out that Dragon is installing large pipelines — far larger than current production requires — to transport oil from offshore wells, and that it is also building storage facilities. Yet there may be a more straightforward reason for the big pipes. Driving the oil out of the ground with water suggests that the reservoir pressure has waned; a peak in production should follow. By enhancing output this way, water mixes with the oil in rising proportions over time. That means more fluids need to be moved to onshore processing plants — to separate oil from water — over the coming decade. That would explain the need for the large pipes.