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I really do feel for Roger, who seems to have taken all this business with FTO to heart. Why cannot he sell his shares now and make a profit, if he has been buying since the start. They have been very cheap over the years, and never soared, so unless he bought right at the top, he ought to have made a profit somewhere down the line. FTO was never to be taken seriously, so for Roger to have so dedicatedly spent a good part of his life concerned with FTO, this is indeed a tragic tale, just before the season of good cheer. As for contributing to the BB, he has as much to say as anyone else, and possibly more. I,for one would love to hear more about his love affair with FTO. So many of us fell under the spell, and were rewarded from time to time, and on one occasion quite well, by way of a large one off dividend. Anyway, a happy christmas to one and all, and thank you Dell, for explaining things to us...
and all other posters who have provided very good information over the years . I have been a holder of Fortune ever since the launch, I have no other holdings but bought on a hunch that China and energy must eventually be a winner. Watching the progress of fortune oil and reading this BB has been part of my life, and I have topped up along the way. I am deeply disappointed that my hunch all those years ago is only now going to be proved right but alas I will see no financial benefit, and my only interest in the stock market snatched from me. I have never considered that I have had enough knowledge to contribute to the BB, but thanks again to all who have and especially to Dell who has taken time to explain things and educate us
The only realistic wAy we have gaining a more honest valuation for our shares is if we can prevent the board and its supporters from acquiring the percentage they need . If Institutions and or arb specialists want to come on board well so be it
One institution bought since announcement.....it may be one of our ways of figuring out how to deal with this offer... If they are very unhappy with the cvr's, they may make a public statement or they may just star buying in the hope of a quick profit.... Eyes open folks...:-) http://www.digitallook.com/cgi-bin/dlmedia/rns.cgi?action=news&rns=1&view=full&story_id=22335312
I know over here in the UK, nobody is interested in FTO..... But at the very most there is 45% of an undervalued company, with a substantial interest in a high growth, high sector and highly lucrative up and coming future economy. How ever you dice it, even if FTO end up going private, it would still be a big earner to grab a decent size chunk of it and stay with it after it goes private..... I would imagine the Daniel Chieu wants it private because of the future earnings about to come on stream... Other then the recent tranche of 13,250,000 bought @ around HK$14.70 from Sinopec, all our shares in CGH were hugely lower then the current depressed price of HK$12.. I had done the maths somewhere before (when I cared..:-) ) and had worked out an average buying price of about HK$7.50. And that included our conversion shares for the FGIH purchase. I think they have room to improve the offer and hopefully someone else in the Chinese energy sector will see that soon... A hold in my book, with perhaps a speculative buy for others, who like a gamble......
Nice to dream, but you never know given the cash at hand and interest in CGH. http://file.irasia.com/listco/hk/behl/interim/2014/int.pdf "As at 30 June 2014, cash and bank deposits held by the Group amounted to HK$13.16 billion" Worst case 10p at the moment, not what I hoped for .............
If you are not in a hurry or a need for the monies invested in FTO, then I would "suggest" (not advise) you hold for the foreseeable future...ie...the offer document is posted out..... There is 10p potentially on the table at the moment against 9.34p in the market as we speak... The offer document may have reviewed terms (may not) but it should make clearer the cvr situation, or at least put more meat on the bones of the scheme.... So I would suggest if your in to hold, for now...provided you are not desperate for the cash for Christmas or to pay off a bill.....Good luck either way innes...:-)
Hi I am fairly new to FTO shares, bought as a punt, did well with the good dividend but now I am completely lost. Do I sell, do I hang on and wait and see, unfortunately I bought at around 12p, any advice would be much appreciated.
Thank you for your quick response Dell44; I would be telling lies if I said that I do not have any self interest in the situation, however I do feel for those that may have had their hands burnt in FTO, particularly when you consider the value of the company to what has been offered.
I understand by law the compulsory rate would be the same terms as the offer....... 4. Fortune Dynasty reserves the right to elect with the consent of the Takeover Panel (where necessary) to implement the Acquisition by way of an Offer. In such event, the acquisition will be implemented on substantially the same terms, subject to appropriate amendments, as those which would apply to the Acquisition. The acceptance condition would be set at 90 per cent. of the shares to which such Offer relates (or such lesser percentage (being more than 50 per cent.) as Fortune Dynasty may decide with the consent of the Takeover Panel). Further, if sufficient acceptance of the Offer are received and/or sufficient Fortune Oil Shares are otherwise acquired, it is the intention of Fortune Dynasty to apply the provisions of the Act to compulsorily acquire any outstanding Fortune Oil Shares to which such offer relates.
If one does not accept the offer and the necessary quota of acceptance is reached., can they acqire your shares on a compulsory basis at less than 10p per share? If not then surely it is worth taking a stand and try and hold out for more?
Dont blame you...:-) At the moment you have 2 choices at your disposal... 1. You can say "enough is enough" and take the best bid in the market now. Currently you would sell for about 9.34p per share. 2. Wait until the "Offer document" is published and dispatched to shareholders to peruse at there leisure. If nothing else changes, then you can fill out the acceptance form attached to the offer document and send it in with any share certs you have, return post. Within 2 weeks Fortune Dynasty will pay you 10p per share...plus a cvr for each share you own.... Weather the cvr has real value, you will just have to wait and see..... That's it really....
In laymen's terms do we need to do anything or is it just a wait and see. To be honest don't really understand whats going on .
It is not a done deal as we stand. Fortune Dynasty is of course saying that the company will be DE-listed from the 2 of March 2015...but with 45% of the company shares not in Fortune Dynasty's hands, that would not at all be too the there advantage. There are some institutional investors in FTO still and I am quite sure they may not be to pleased with this offer.... So, the offer document may be changed (or it may not). I believe the rns of Thursday was perhaps the opening shot and they may indeed have room to maneuver before going to print....I hope
Interesting post . If its the case that the vote is actually only open to 45% of shareholders that is a very interesting point and makes the deal less than certain ! But as pointed out by others if the vote doesn't go through were does that leave the resulting sp? Fortune seem to have tied themselves in knots..The 5p does indeed appear to be a red herring !
The rns the other day was just alerting the market to an offer for FTO... The offer document when it comes will be the real deal....That will be the offer and can only be changed in the event of a third party entering the fray, which is unlikely here..... The offer document to be published and dispatched around the 14th January will be the one we vote on...
As this offer stands at present,it seems to me derisory in the extreme,especially as we will never see the 5p. Is the 10p offer fixed or is there any chance of it being amended? My sympathy to all UN FORTUNATE PI,s
From a fellow investor on another board....alandale.... He writes as follows....... I have just had a VERY interesting conversation with Frank Attwood. It would seem that we are being right royally stitched up and the CVR is not worth the paper it is written on. It will only effectively be honoured should someone make a takeover bid for CGH in the next twelve months. The 11p minimum price would seem to be meaningless. The price can remain happily at say 13p over the year and they can still decide not to sell. Indeed, they won’t. The issue is the arrangement that Chiu has with Liu that even the share of CGH that Fortune owns outright is part of a long term commitment to CGH that can only be broken if there is an outright bid that releases it. I would suggest that is Chiu’s problem, not ours. Fortune is effectively a business earning 3p a share (although the CGH interest is taken as a dividend). A price earnings ratio of 3 when our principle asset is on a P/E of 20 is derisory. Now we have options. The offer has to surmount some high hurdles. First it is only open to the 45% of shares not held by the bidders. Second the bid has to command a majority of physical shareholders that vote; second it has to command 75% of the shares that are voted. Now I know someone who specialises in representing minority shareholders in precisely this kind of situation. I will keep you posted on what happens. In the meantime I would urge you contact as many people as possible, especially on other blogs if you have access. All feedback is welcome. Attwood accepted the bid because it was the only way he could see of realising value in the short term. It seems that all earnings will go to liquidate the debt that has been run up to buy CGH shares which is hidden away in the CGG accounts but not in ours. I’d really, really like to know Ian Taylor’s take on this shoddy little number.
LOL....Yes, I too viewed it through a slightly alcoholic haze....:-) Will check it later, without the haze...
Through a slightly tipsy haze I could find very little that wasn't mentioned earlier..whether the 5p goes ahead seems to be the only uncertainty ! Are they willing to sell 35% of Cgh shares in the future to ensure the deal goes ahead? Who knows? Hope so :-)
Whilst browsing I read a confidentiality document between Fto and Dynasty dated the 25 Nov pertaining to the takeover ..Fortune was 7.53 p then....
...apparently has some up dated documents pertaining to the offer....I cant seem to get beyond the "I agree" click button. Some of you may have better luck....from gwatson56 on another board.... http://www.fortune-oil.com/en_us/investor_announcement.htm
I don't think the sp is going anywhere fast from its current position... A rival bidder can not even be priced in at this level. So more a case of waiting for the offer document to be posted...... At least we got our end of year spike again....LOL...
I don't think that there is any chance in hell taking on this lot, who are beginning to give the impression of characters out of one of Sax Rohmer's stories, though I am not suggesting that there is anything other than "clever stuff" afoot. Like Confluence, I am out of FTO now save for 80000 shares, which I found that I had from years ago, and didn't cost very much anyway. They may come right. I seem to have missed all the fun, with people running about seeking legal advice. I never expected anything to come of FTO, and neither does a Stockbroker friend. It seems to be a running joke, and a running sore, the latter for a good number of investors, but there is often a rally with FTO, when all seems doom laden.
The following is only my opinion - I think if I was heavily invested here I would seek legal advice - i only have a few thousand in here and have previously traded ok (in and out of FTO) - so for me it is not worth the extra investment of a legal advice. But even though the BOD may have a case to answer - as it owes a duty of care to all its shareholders - the thing is the burden of evidential proof rests on those purporting a wrong - where can you get that evidence? - the SP falling prior to the offer suggests a set up - but again where is the evidence of wrongdoing? - IMO these guys are slick - they should really be offering 15 per share outright - I had been invested in HOIL (did ok in that too) but again had to sell on takeover but with the FTO - itsSP fall and conditional 5P just seems a set up - but again this is FTO! I hate been "screwed" over in this way but the only thing worse than that is the BOD thinking you don't even know it,