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....To sell now if you have accepted. That stock is now committed to escrow
I believe you are correct. I have accepted the offer but am now considering just selling on the open market as the share price in the open market is almost the same now and as you say you would be read to re invest if you so wish rather than having to wait. I got told it can be up to 2 weeks
up to you hasiba, but in your perspective, I think you better sell on the market now which is at about the same price and you will get your money now ready to get back in after the extended 10 days offer period if you want. I heard that when you accept a bid offer there is a delay before you get paid that could extend to many weeks...and you can still retract your order to accept the bid if you already applied, up to May 3rd. Just my personal opinion from my understanding...
I am new here and not sure what to do now, just to be on a safer side I am considering to accept Delek bid so I do not end in a mess. Does any body have alternative solution but safe!
Mostyn, the rules are saying that the stock can be delisted from the TSX after a minimum of 30 trading days, IF the stock meets the really low volume conditions as specified, which I doubt will happen on IAE. Then it says that delek can force you to sell (with the other tendering shareholders) IF they reach 90% at the end of the mandatory 10 days offer extension, in which case you would be out at current bid price, like the others. But the remaining shareholders will be harder to get. The risk you have is to see the stock retreat after the offer, but it's not sure to me as growth news are about to pop and I bet many who sold will want to get back in once they see the stock still alive after all that... All just my personal opinion from what I read, and it is written black on white to me...
Another question I have is will there be any shorters/will you still be able to short this? If so there could be the chance of a short squeeze and a massive price spike?!?
So they wouldnt give me much and not sure how it'll go, but I'm going to hold my shares. My thoughts are they need another 20% of the company and a few people will have held for the extra 10 days to see what happens. It willbe close. If it gets to 90% we have to sell, if it doesnt, they wont meet the criteria to delist.........SO WHAT TO DO? Can anyone name any prior examples of a similar situation?
At this time Delek has not announced if they intend to delist from the TSX & AIM once the offer closes. The purchase of Common Shares by the Offeror under the Offer will reduce the number of Common Shares that might otherwise trade publicly and will reduce the number of holders of Common Shares and, depending on the number of Common Shares acquired by the Offeror, could materially adversely affect the liquidity and market value of any remaining Common Shares held by the public. As of the April 20th expiry to the Offer, Delek owns approximately 70.25% of the issued and outstanding. There are certain rules and regulations (set out below) which would lead to the cessation of trading and delisting of the Common Shares from the TSX, whether Delek intends to delist or not. â€According to the TSX Company Manual, the Common Shares may be involuntarily delisted if (i) the market value of the freely-tradable, publicly held Common Shares is less than $2,000,000 over any period of 30 consecutive trading days, (ii) the number of freely tradable, publicly held Common Shares is less than 500,000; or (iii) the number of public security holders, each holding a board lot or more, is less than 150 in each case exclusive of holdings of officers and directors of Ithaca and persons who own or control, directly or indirectly, 10% or more of the Common Shares. Depending upon the number of Common Shares purchased pursuant to the Offer, it is possible that the Common Shares would fail to meet the criteria for continued listing on the TSX. If this were to happen, the Common Shares could be delisted and this could, in turn, adversely affect the market or result in a lack of an established market for the Common Shares.†Should Delek obtain 90% of the Issued and outstanding shares during the mandatory 10 day extension, Ithaca can then proceed with a Compulsory Acquisition to obtain all of the shares of Ithaca, which at that point they could cause Ithaca to apply to delist the Common shares from the TSX and/or AIM as soon as practicable. The TSX Company Manual outlines when a shareholder vote may be required prior to delisting. Under Part VII Halting of Trading, Suspension and Delisting of Securities Please do not hesitate to contact me should you have any further questions. Regards, Linda... Linda Donaldson Account Manager LAUREL HILL ADVISORY GROUP
We are a few pence above the pre offer price. At this rate we will have a nil premium takeover. they should have fixed a floor in both gbp and cad prices. It's disgraceful that those who have tendered in good faith based on what was offered are now losing out just through the FX which has nothing to do with them. So Delek are getting an even better deal by waiting. It's sad to see a good company end this way.
Spot on foresight, it is not sure which way the stock will turn after the bid period. But with much less shares available, if news turn good, hang on. And I bet delek will put the necessary price to get the rest, which won't be a pain for them...We see more and more buying at $1.95 on the canadian side in the "hidden markets"... All my personal opinion
The question is do Delek want to have a London Listing for future activities. They will end up with at least a mid 80's % after this period. Do they want the pain of a listing for such a small free float? Or do they see value in the listing which legitimises them. If they think the going 100% private is best for now, then they may need to sweeten the deal to get over 90% and I believe that that deal then is given to all who have already tendered. If they finish in the 80's then they will keep the listing but what would happen to the share price? There will not be any institutional buyers as it is too small a free float. So will the SP go down, at least for a while? If so, best to sell now and buy back in. The only reason to hold now would be if you believe that released from this bid, the SP will go up immediately. I suspect it would go down but who knows. But if we all had that attitude, then they will get over 90% and its all academic anyway. Ultimately, this is a messy situation for us long term loyal shareholders who have been in before the crash and so are sitting on a loss. The board did not try and get the best deal for us but then they had no incentive to as they stay on. A bid at £1.5 would have made everyone happy but this makes me high sceptical of the collusion between the board and Delek. I was trying to get my head around £1.2 and now I have to contemplate £1.13. So a nil premium take over of an undistressed company - one for the M&A books I think!
1- If delek do not reach 90% at the end of the actual extended offer period, on may 3rd, the remaining shareholders will not be forced to sell and the stock will resume trading free on the normal markets. Conditions for a delisting are pretty hard to get (been posted a few days ago) and won't happen quickly, if it ever does. 2- The remaining shareholders will be the hardest to get. 3- On level 2 for the canadian market, which shows the market depht and trades, we've seen today a lot of trades at $1.95 on the more secondary markets and these are going on under the normal radar...The ones who buy at $1.95 surely think they have a chance to get more than that in the future... If your broker doesn't know about the extended period, change your broker... All just my personal opinion
Investors who have held on waiting for Delek to increase their bid have held dead money for almost three months. In that time the price of oil has risen and fallen three times with each time providing an opportunity to generate profits. Holding out for Delek to increase the bid was never the correct play given all the other investments out there. If you have played the ebbs and flows of the price of oil you would have generated the equivalent of 200p on your initial IAE investment. This was a case of falling in love with a stock rather than recognizing that cash could be allocated elsewhere to generate more profit at less risk. For those who are thinking of not tendering their share, you may just end up with your wish of Delek NOT getting the 90%. If that happens, don't expect Delek to play nice. It really is time to let it go and move on. Just saying.
Sorry, forgot to add option 4! 4. They get up to between 76%-89.9% during the extended offer period. Nothing else happens - a small remaining stake (> 10%) remains listed. Boh pros/and cons of this from Delek POV.
Delek have stated they intend to force a squeeze out if they get to 90% - which in any case makes sense from their POV. They own 76% now. Seems one of the following will happen. 1. The extended offer period gets them up to 90% and they force a squeeze out. 2. They get up to between 76%-89.9% during the extended offer period. They then delist the shares - no improved offer price to get to 90% or anything. Anyone know of any precedents for this? Seems to be worst case scenario for PIs. Also not sure Delek/Ithaca can simply do this at their choosing? 3 They get up to between 76% - 89.9% during the extended offer period. They then improve the share price a wee bit to get up to 90% to force the squeeze out. As per takeover rules, all the previously tendered shares would get this new, slightly higher price. Seems options 1 and 3 most likely to happen - which suggests still no point tendering right now. Option 2 would sound very messy and controversial for them, and might not be worth the hassle for a slightly improved offer to get to 90% to cleanly squeeze out.
Have 50k shares, bought at 24p early 2016, so sitting on a fat profit. Also don't know what to do. Would happily sell at 150p but that's not a massive improvement on an already large profit. Could use the ££ to reinvest in other opps. Key issue for me is if they get to 90%.....does a squeeze out have to be at least at same price as the offer?? Wou,d have thought so. If they get to 85% and it remains listed I don't really mind holding on for the medium term.
You and me both! I didn't think Delek would succeed at the first attempt, so hung on to my shares. Now unsure as to what to do. I've tried selling some on line with H-L but couldn't so still have them all-not a huge holding, 25k. I've held them a while so well in profit and will probably try later in week to sell again, but mainly because I just don't know how this is going to work out.
How is this going to affect the share price in the long term? i have been holding for a while now but now i am a bit unsettled with ithaca's management and am tempted to sell off my shares as i dont know how this Takeover By DELEK is going to change things, so long as the don't get the 90% and force my hand. If Delek Bidd did not go thought i struggled to see any downsides so long as the oil holds up, I would be most definitely still be holding its a no brainer in my opinion but now i am unsure now with Delek in the mix...
Thanks Keith, great info. Im going to do somemore research. So your not going to tender then?
Lessons learned if any of the Directors set up / join a new company. it just eliminates the wheat from the chaff. Brad Hurtubise , Les Thomas , Ron Brenneman , Jay Zammit , Alec Carstairs , Joseph Asaf Bartfeld , Yosef Abu. From Malcys blog today Last week I had been planning to write another interim report on IAE but heard that it was all over bar the shouting so didn’t in the end. Today the company has announced that 70.3% of the non-Delek votes have accepted the offer. This reminds me of the Centrica offer for Venture Production where shareholders also sold the company down the river. Of course the VP directors stood and fought, unlike the IAE directors who have taken their 30 or so pieces of silver. Now don’t get me wrong, I have immense respect for Les Thomas and team which is why I have said that they should have stayed and taken the company to the next level and I do appreciate that they have to assess the risks involved in making that decision, I would at least like to see Les and team reappear with another ‘venture’. Date extended to 3rd May, after which I will need a new bucket list participant, might even be a company run by someone who was on the board of Venture…
You still can keep your shares, no one is forced to sell until they reach 90%...
Be sure to thank him for us here in Toronto!! SCUMBAG POFS, filled his own pockets..lesson learned, never trust any publicly traded companies MANAGEMENT.
TEL AVIV, ISRAEL--(Marketwired - April 21, 2017) - Delek Group Ltd. ("Delek"), and its wholly-owned subsidiary, DKL Investments Limited (the "Offeror"), today announced that the offer to acquire all of the issued and to be issued common shares ("Common Shares") of Ithaca Energy Inc. ("Ithaca") not currently owned by the Offeror or any of its affiliates for C$1.95 per Common Share (the "Offer") has been accepted by holders of Common Shares representing approximately 70.25% of the total number of Common Shares outstanding, excluding those beneficially owned, or over which control or direction is exercised, by the Offeror and its affiliates and associates and any person acting jointly or in concert with the Offeror. As such, the minimum tender requirement under applicable Canadian securities laws has been satisfied and all other conditions to the Offer have been satisfied. Computershare Trust Company of Canada (the "Depositary") has reported that as at 5:00 p.m. (Toronto time) on April 20, 2017 the expiry of the initial deposit period of the Offer, a total of 241,293,465 Common Shares were validly deposited under the Offer and not withdrawn. The Offeror has taken up and accepted for payment all such Common Shares. Payment of C$470,522,256.75, in the aggregate, for such Common Shares is expected to be made to the Depositary as soon as possible and in any event not later than April 25, 2017. If Common Shares were tendered through brokers or financial intermediaries, holders of such Common Shares will receive payment for their shares through their broker or financial intermediary. The Offer is being extended for the mandatory extension period until 5:00 p.m. (Toronto time) on May 3, 2017, unless further extended, to allow Ithaca shareholders who have not yet tendered their Common Shares to the Offer an opportunity to do so.
Same conclusion londoner7, thanks for all.
Same thought as you Mostyn. The stock will keep trading at today's price up to May 3rd. I think many of the remaining shareholders will tender their shares during that extended offer period, and it is possible that delek reach 90%, which would force everybody to tender. If they do not reach 90%, the stock will keep trading and there's an unknown timeline up to when they can proceed for a delisting from the big markets (TSX and London). The stock would still trade in secondary markets in that case. And If they do not reach 90% with this offer, I expect them to try to get the remaining shares pretty quickly, and it is likely to be at a higher price, imo. My shares won't be available until they get to 90%...I've seen a case where the bidder came back with 2 additional bids at higher prices to reach to the 90% level... All in my personal opinion "The rules and regulations of the TSX and AIM establish certain criteria which, if not met, could lead to the cessation of trading and delisting of the Common Shares from the TSX and/or AIM. According to the TSX Company Manual, the Common Shares may be involuntarily delisted if (i) the market value of the freely-tradable, publicly held Common Shares is less than $2,000,000 over any period of 30 consecutive trading days, (ii) the number of freelytradable, publicly held Common Shares is less than 500,000; or (iii) the number of public security holders, each holding a board lot or more, is less than 150 in each case exclusive of holdings of officers and directors of Ithaca and persons who own or control, directly or indirectly, 10% or more of the Common Shares(...)Furthermore, Ithaca may apply to have the Common Shares voluntarily delisted from the TSX, in which case section 720 of the TSX Company Manual may, subject to TSX discretion, require minority shareholder approval..." from delek's circular