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many thanks Dell I will do that
I am registered with Capita and do all my voting through them but you may have to contact them to set up or discuss..... https://www.capitashareportal.com/forms/Welcome.aspx
thank you dell once again for all the work you are putting in for us all, I have built up a fairly large holding and will vote no, however I will be away from 9 jan for 5 weeks is there anyway I can vote online or will I need the paperwork that presumably will come in the post thanks
From rns dated 18th December 2014 (e) the nature of Fortune Oil's holding of China Gas Holdings Shares is such that the ability to deal with its China Gas Holdings Shares is restricted and such dealings are only permitted in a limited number of circumstances and, in respect of a number of such shares, are subject to the consent of a third party. Fortune Oil's ability to realise value in the China Gas Holdings Shares it holds is therefore constrained. In addition, the net realisable value of the China Gas Holdings Shares held indirectly by Fortune Oil is materially impacted by the level of debt in China Gas Group. What is this about? FTO oil was allocated cash or shares in CGH as payment for the second tranche of payment for FGIH. So what constraints are they talking about? Surely if the bod chose cash, we wouldn't have been told how to spend it??? How about our JV with Minghiu through CGG?? It is a 50/50 JV....we need a third party's permission to sell these? Then is that a JV? How can that be and how come that was never mentioned until very recently? Is the term JV, misleading? So a cvr is announced as a part POSSIBLE payment, yet we are constrained in our actions with the very securities they want to sell and expect us to believe us to believe that?
Fortune Oil Financial adviser VSA Capital Limited, who is authorised and regulated in the United Kingdom by the Financial Conduct Authority, is acting exclusively as financial adviser to the Independent Fortune Oil Directors and no one else in connection with the matters set out in this Announcement and the Acquisition and will not be responsible to anyone other than Independent Fortune Oil Directors for providing the protections afforded to clients of VSA Capital Limited nor for providing advice in relation to the Acquisition or any matters set out in this Announcement. Neither VSA Capital Limited nor any of its subsidiaries, branches or affiliates owes or accepts any duty, liability or responsibility whatsoever (whether direct or indirect, whether in contract, in tort, under statute or otherwise) to any person who is not a client of VSA Capital Limited in connection with the Acquisition. Oh really? Wasn't that long a go, they were expressing a price target of around 20p+... So why the big change all of a sudden? Quite laughable actually...except it is hard earned money out here that investors have put into this company....
The Company has changed its financial year-end date from 31 December to 31 March starting from the financial year of 2014. The change is to align the Company’s financial year-end with CGH to facilitate the preparation of the Company’s consolidated financial s tatements. The Company’s statutory accounts for the fifteen months from 1 January 2013 to 31 March 2014 will be published by the end of July 2014. As a result payment of the Company’s normal annual dividend will be deferred three months to November 2014 but will be related to a fifteen months period. Page 8 of 42..... Juicy carrot of a 15 month dividend but only 5 months later and they announced nothing. The implied dividend never materialized...so why should the cvr be any different?????
The return of value from CGH is therefore a key issue which may become clearer as the shareholders' meeting approaches - on or before 28 February. Shareholders are in a hard place - but could yet exact additional value to the basic 10p/share offer Their dilemma is no rival bid being likely given the elements of corporate control; and then a de-listing in March. Yet the buyout directors must still achieve a 75% majority and minority shareholders can express their views, especially if January's offer document still begs questions. If they are left aggrieved then the buyout directors run some risk, this gets picked up online as discontent simmers, to affect their reputations longer-term. So minority shareholders are not powerless. At 9.5p, Fortune Oil is therefore a "takeover arbitrage" situation to watch, also as a test of the conduct of Chinese business (listing in London). With a low chance of the deal falling through, a 10p basic offer to conclude next March and potential further return, the risk/reward profile is interesting. So it would seem that there is a growing interest in this small long quoted company and it's Chinese owner directors... The end game is not quite what many of us expected...as we probably never expected to be in a fight against the Chieu brothers but it is beginning to look that way, with the derisory offer that has thus far been mentioned... IF THEY REALLY WANT TO POCKET THE COMPANY THEN THEY MUST LOOK TO INCREASE THE CASH OFFER AND DO AWAY WITH THE RED HERRING CVR, WHICH THEY HOLD COMPLETE CONTROL OVER. Do they really expect us to trust them after the last year? So Mr Chieu & Mr Taylor.....!!!
To Western eyes, the near £200 million stake is the rightful property of owners; whereas the board proposes a "contingent valuation right" to a further 5p a share assuming the volume-weighted average price achieved in CGH over a 12-month period is above HK$11. Properly, minority shareholders are entitled to whatever value is realised, hence this seems a googly. The recent chart and statistics show CGH peaking around July at $16 then falling to about $12 where they trade on a price/earnings multiple near 21 times and yield 0.9%. Such a profile may be exposed to a shift in market sentiment, say if China has problems with its soaring debt. But CGH is one of the largest city gas companies in China, well-positioned to capitalise on the trend to urbanisation and natural gas usage. Long-term it should have excellent prospects (partly why it is opportunistic to buy out Fortune Oil after the share price drop?) and at last July's prelims Fortune said: "our shareholders will continue to have good exposure to this rapidly expanding market through a company where commensurate dividend growth is anticipated." On 13 August Fortune acquired a further 13.25 million shares at HK$14.8, taking its CGH stake near 935 million or 18.6%. Note 11 to September's balance sheet cited the fair value of the stake as £201.7 million equivalent, based on the then share price of HK$12.88. Overall net assets were £360.2 million or 13.9p a share with intangibles of just £370,000. Directors changed their tune when poised to bid Then on 1 September the Chinese government hiked gas prices by 20% (effectively ending a subsidy) which has contributed to the fall in CGH's share price. The tone of Fortune's 28 November Interim Management Statement turned worrisome, saying for example that the slowdown in Chinese growth and fall in oil prices "has increased our inventory risk"... "the slowdown in the growth of China's property market will reduce the rate of gas connections and associated fees in city gas concessions"... and "as a result of the possible uneven timing of distribution of dividends received (from investee operations) Fortune Oil will require careful treasury management in order to avoid future cash shortfalls." Fair to an extent, when oil prices are plunging, but in the words of the late Mandy Rice-Davies: "They would say that, wouldn't they?" when poised to make a cash offer. What irks is seeming potential for a transfer of value in the CGH stake, to the buyout directors (if CGH shares recover). And what might happen if a conditional average share price of HK$11 is not achieved? In pricing Fortune Oil shares at about 9.5p currently, the London market ascribes no value to this proposal whereas you'd expect to see Fortune trading say at 11-12p, all-considered. The return of value from CGH is therefore a key issue which may become clearer as the shareholders' meeting approaches - on
China was promoted as a growth story but making money has been fraught with woe. Fidelity fund manager Anthony Bolton tarnished his reputation launching an investment trust that ran into losses, and China-related shares aimed at Western investors have often disappointed - ending up acquired at low points. Even Warren Buffett is getting his fingers burnt as a Chinese electrical car maker he holds - BYD Co. - has plunged 40% amid a worsening outlook for the Chinese car market. Fortune Oil (FTO) is one such example in the London market I have followed for maybe 15 years; now in its end-game. The company is UK-incorporated but operates from Hong Kong, nowadays an investment holding company with interests in oil products and urban gas supply to China. It has always appeared a good growth prospect yet the stock has traded volatile-sideways. Board members are predominantly Chinese and the two founding brothers own a controlling 51% stake. Despite there being "independent directors" such a structure has likely deterred institutional investors and broker coverage, another reason the shares have languished. The nagging worry is that while this kind of company ticks certain rules of cricket, you never know when it might throw a googly. A well-timed, if oddly-structured, buyout offer Fortune Oil - financial summary Year ended 31 Mar (no forecasts available) 2009 2010 2011 2012 2014 (15 months) Turnover (£m) 192 276 139 123 262 IFRS3 pre-tax proft (£m) 18.1 26.1 12.2 7.7 49.4 Normalised pre-tax profit (£m) 17.4 23 6.7 6.2 -16.8 Normalised earnings/share (p) 0.4 0.5 0.1 0.2 -0/6 Cash flow per share (p) 1.5 1.3 1.4 1.3 -0.2 Capital expenditure per share 1 0.7 1.6 1.1 0.4 Dividend per share (p) 0 0 0.1 0.2 2.4 Net tangible assets per share (p) 3.9 4.9 4.6 7.5 13.2 Source: Company REFS. After the non-index shares more than halved this year from 14p to a five-year low of 6.3p, a cash offer of 10p a share is proposed by Fortune Dynasty Holdings, a British Virgin Islands company owned by two Fortune directors. With 56.91% of the shares in support, only 42% of the remaining minority holders are needed to achieve the required 75% acceptance level. The news release is quite sketchy; a formal offer document is expected from 14 January, it should be possible for a potential investor to find via Google (GOOG). What raises "takeover arbitrage" interest is a potential further 50% upside to the 10p basic offer, assuming Fortune disposes of its stake in Hong Kong-listed China Gas Holdings (Fortune previously divested gas interests to). This compares with Fortune's current share price of about 9.5p. To Western eyes, the near £200 million stake is the rightful property of owners; whereas the board proposes a "contingent valuation right" to a further 5p a share assuming the volume-weighted average price achieved in CGH over a 12-month period is above HK$11. Properly, minority shareholders are ent
Calisto...Sorry, just in from work when I wrote that..:-) In summary, I am still not convinced about there low ball bid, with the growth potential to come.....
Your 1% could be vital, it can be done given a meeting of the minds. Let us have a go to throw this disgusting proposition back in their lap(s) with all the strength we can muster. Thank you for your contribution.
This gives me some degree of comfort, as I hold a significant volume of shares and am singing from the same song sheet. Thank you for your response, it is most appreciated.
We got 1% between us
For what it's worth, my not inconsiderable share holding, will definitely be voting NO to this opportunist low offer!!! I do intend to go to the meeting, if only to be able to meet the people who are trying to rip us off!
I do hope that the minority shareholders offer sustained resistance to this derisory offer. The quality of the FTO reporting on this chat line is extremely impressive with some very cogent persuasions as to why we should not accept the foregoing. I find the whole situation very disturbing: I just wish I was more forensic in these matters, unfortunately I do not have the skills to hand.
Sorry, article headed ''a speculative takeover arbitrage play''
See article just published in Interactive Investor. rgds
Not sure I follow final sentence of well structured argument . Odd how CGH price is drifting ever closer to the HK$11 must be coincidence
Thanks for your thanks!!! I just hope to ever put out information that may be an interest to any holders of FTO shares... Fully aware of the many long termers in this stock, who have built it up from the 1p range, in the hope that it would become a player in the biggest energy market, yet to be fully exploited....And the numbers that CGH is potentially exposed too, is staggering...CGH are currently paying out 22% of ATP in dividends, with a target of 30% with in the next few years....Of the over 250 city wide distribution exclusive licenses they currently hold about 100 of them are not even connected to the gas grid infrastructure and of the 150 there abouts, quite a few are limited by the gas shortage in China.....and again, many cities in the north east region which will benefit from the new gas set to flow from Russia are still not fully connected to the grid. Huge potential sales there as it is one of the coldest regions in China.. Also, CGH's car fuel gas stations are only accounting for 10% of BTP...but that is set ot rise to about 25/30% of profits in the next 3 years. Hence the focus on the rolling out of all the CNG stations...they are more open to increased profit then the gas grid network..... Worth considering what we have a steak in and how cheaply the bid is for...In about 3 years time...FTO could be yielding over £14 million in dividends alone from CGH, not to mention Bluesky et cetra.... Am still not convinced that it just a low ball offer.
I don't think that there is any point worrying yourself about all this. Go and enjoy your break and be thankful that you don't have a larger exposure to the ups and downs of the Stockmarket.
Nicky, I will be needing some advice regarding the vote, because before all this happened we booked to be away in far east from 9 Jan for 5 weeks so probably wont be here when the paperwork arrives, obviously I would still like to vote for what its worth, and also would be keen to offer support if there is a move afoot to seek some professional opinion. Ironically our trip will also include my first visit to China, timing or what. Better not get sight of anything that refers to FTO !!
Well at least GW got their Canabis based drug approved and on sale in several countries. 2 years ago they were 64 p and I sold at 360 too soon. They now have other drugs and I think the friend will do at least ok.
FTO has been a bit of fun, I agree, and I also thought that it would come right big time. I still have shares which cost very little just in case something does occur, which is unlikely. The Dickension gloom aside, it may still come right for you, for as you would know, having been there from the start, FTO plays peculiar games, and has almost died the death on several occasions. A friend of mine, rather like you, is a one share man, and put his pension into a Drug company calles GW Pharma, which went from a few pence to several pounds and back again, and then up again. He just waits and hopes, so maybe the new year will bring some good news. Meanwhile, I hope you enjoy a very happy christmas!
thank you for the info/advice, I was planning to hold on to the shares for the time being will now wait and see what happens, regards
My" fascination" (love affairs rarely last this long) began late one sunday night whilst driving heard a short mention on the radio about a new oil company that had done a reverse takeover of another company (something like Blackland oil) to gain a listing on the UK stock market and that the shares would be going on sale the next day. The roller coaster ride was great fun I always was confident that one day ...even if after I was gone that this might be a life changing share . I could have taken profit along the way but not being in the industry saw no other exciting shares, it has been great fun and it is that I will miss most, as in all tragedy the main character (FTO) always dies