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I wonder who got these extra shares? Ithaca Energy Inc. Additional Shares Listing --- 21 April 2017 Ithaca Energy Inc. CA:IAE -0.51% (lse aim:IAE) ("Ithaca" or the "Company") announces that it has issued an additional 9,452,868 common shares in the Company resulting from the exercise of share options that have vested as a result of the takeover offer made by Delek Group Ltd ("Delek"). These shares have subsequently been tendered to the takeover offer. All other outstanding options have been surrendered or cancelled in accordance with the definitive support agreement entered into between Ithaca and Delek in connection with the takeover offer. The Company has applied for the newly issued common shares to be admitted to trading on AIM, which is expected to occur on 27 April 2017. Each new common share will rank pari passu with the existing common shares. Following the issue and allotment of the new common shares, the Company will have a total of 425,338,568 common shares in issue with one voting right per common share. There are no common shares held in treasury. The total number of voting shares in the Company is therefore 425,338,568. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the UK Financial Conduct Authority's Disclosure and Transparency Rules.
Can anyone tell me how long it will take hypothetically for delek to delist ithaca if they get over the 90% threshold? I haven't tendered or sold my shares and am very tempted to stay as a minority holder is they stay listed. Currently £1000 down which I'm not happy about, but could the shares fly on the limited free float? Opinions most welcome.
Gut feeling told me to sell at time of offer and transfer whole of investment to SDX. So pleased I did now but was hoping to make so much more with IAE. Still can't complain....
At least we havent gone bust like some companies so not a disaster, just annoying. If the pound had strengthened sooner I doubt enough would have sold to Delek, as it is it justs adds insult to injury. After consideration, for me it will be a reluctant acceptance of the offer now, too much uncertainty around the liquidity of the remaining shares and interest in them. On the bright side there are plenty of other shares offering good potential, perhaps better than Ithaca would have been so it might work out for the best. A few of many examples: AMER is undervalued with it's new pipeline economics, FOG has a massive discovery only being held back by a token moratorium, can't see Australia turning it's back on such prosperity, the risk/reward is worth it IMO, and how about MTFB potential billion dollar antibiotic largley derisked and undervalued, just a few suggested options for your Ithaca cash, just dont put it all in to one of them, may even be able to buy a Delek listing eventually and participate in the Stella story that way.
Sorry guys, got a holding here and very confused! What happens if I hold and don't sell? Thanks
My only investment in the oil sector over the last few years was in Ithaca. I liked the story and had confidence in the management. Remember the hedging strategy that was put in place ahead of the downturn in the oil price – I recall some commentators saying Ithaca were being too conservative in their hedging when the Brent price briefly rose to $110. But it was that strategy and the portfolio of assets that gave Ithaca better protection than most (all?) of its North Sea peers. As the Brent price improved and Stella became a reality I felt the outlook looked promising. For me my investment in Ithaca has been a roller coaster ride and I’ve come out pretty much where I started financially but with a tremendous amount of experience of the sector, and in particular the capital cycle. While those investors that happened upon Ithaca in early 2016 are rightly pleased with their timing there are other investors whose timing was less fortunate and understandably are feeling cheated out of their investment. Based on what I know and given the opportunity I would be investing in the Ithaca story here at 113p. But that isn’t an option. However, I will be watching the Stella flow rates other the next few months to see if my confidence was warranted. I took a decision on the 6th Feb to hold out in the belief that Delek would not succeed at their bid price. I was wrong. In the event I am exiting at a loss of 5% on the market price available on the bid date. But if you wish to remain in the North Sea oil sector you can console yourself with the knowledge that Ithaca’s peers (North Sea producers), Enquest, Premier Oil, Faroe and Cairn Energy are all at double figure losses compared to their 6th Feb price. So if your wish is to remain in the sector then holding out against Delek wasn’t a bad option. Over the last couple of months I’ve monitored the other plays in the North Sea and attempted to understand their portfolios and their financials. But the investment case essentially comes down to your view on the future direction of the oil price and whether you believe in the oil supply crunch anticipated by some and debated exhaustively on these bulletin boards. If you are bullish on oil then you need to assess the different approaches of these North Sea companies. Are you comfortable with the high debt gearing of some or the conservative equity issuance (dilution) of others? Perhaps you’d like a pick and mix. Ultimately, I’ve come to the conclusion that the oil sector is essentially a traders market. As investors we all start out as traders. Personally, I find the day to day monitoring of shares prices tedious and prefer to assess the fundamental merits of an investment. After several decades of investing I’ve also come to the conclusion that for me the fundamental approach is more rewarding and more satisfying. So on the oil sector – I’m out.
Make sure not to forget that name. Him and his mates have well and truly shafted the shareholders here. That Delek got enough to swing it smells very fishy to me. Who was buying millions of shares recently? Arbitrage buyers? Possibly - no one else would want to with the exchange rate as it is - or could it have been buyers even "closer" to Delek and the board? I sold out on here a while back. Dejected and sick of the stink of it all.
Well done Delek - got my shares on the cheap - no good deed goes unpunished
I wonder what the flow rates from Stella are... Delek have bought a great asset ready to produce. I am a holder in FAROE I hope the BoD there puts up more of a fight if / when Delek come knocking. Faroe has a circa £360m market cap currently and £100m in cash. It has as good a assetts as Itheca. The SP is currently £1. any bid for Faroe based in the price here should be easily £1.75. A good place to park funds from here IMO:
I sadly agree with you Londoner. I think Delek have done a great deal for themselves. They got the company before the major news flow at pretty much no premium. This has to be one of the best deals ever. It sickens me that they have succeeded. Ultimately, the board capitulating with them has resulted in this. If the board had a defence strategy we would have had a better outcome. I truly believe we have been robbed of the opportunity to share in the upside after so long and so much support. This is an example of corruption at work imo. The management will cash in now and then get a big slice of the upside in the years to come at our expense. Many people will have done well over the last 6 months so do not care. I have been in for years and so have a different view. It makes me sceptical of the systems in place to regulate and protect shareholders when this can happen but maybe its time to just reluctantly move on...
After 70% of shareholder tendered their shares Delek now control 76% of the company. The mandatory extension is now in operation and is open until the 3rd May. Under this extension you may tender your shares for C$1.95. Options 1) Tender your shares under the mandatory extension. Contact your broker and inform them of your wish to tender your shares. You may do this by telephone. Your broker may offer an online option. I would also expect your broker to write to you about the mandatory extension and to request your instruction. You will be open to FX movement until payment is made 10 days after your tender. 2) Sell in the market. You can still sell your shares as normal in the market but be aware that it will be at a discount to the offer price. The current FX conversion is 113p. Currently my broker is offering 111.7p. 3) Hold on to your shares as a minority shareholder in Ithaca. 4) Any mix of the above. I expect we’ll see bulletin board comments over the next few days arguing the position for and against taking a minority shareholder position. I have no experience in this area. However, it is my understanding from the various circulars that Delek wish to take full control of Ithaca. If all remaining shareholders tender their shares in the mandatory offer then Delek will have full 100% control. If you believe Delek wish to maintain a public listing then you should ask yourself why they have not put some limit on the tender – perhaps they don’t have that option. With a 76% holding it is likely that Delek will pass the 90% mark during the mandatory extension which would allow them to take full control of Ithaca. I have no idea what the terms of the exchange would be. Perhaps others have experience of this. If you wish to hold out as a minority shareholder I urge you to use your brain and not your heart. All the best, Londoner7
1) Is it possible to tender some of one's total holding and retain some of the shares oneself? 2) RNSs are turning up very erratically on this website over the last week or more. Has everyone else found this? The 3 IAE RNSs did not appear on here and i had to go on a different website.
I think that people can still tender the shares and get $1.95. I believe Delek never wanted all the company. They could have sweetened the deal and got 100% easily. They want to maintain a listed company to channel funds from Israel into. They will now take Ithaca as a listed company and grow it and possibly revers other asset into it. So I do not think they will want to buy more shares. They have complete control but do need to abide by the regulations so we are protected as minority shareholders. There is no financial risk to the stock now. And Delek will want big deals to be material. They may use Ithaca to buy Faroe next. The share price has huge upside from here and little downside other than PoO. The current deal makes no sense to them - just owning a small N Sea player as a private. They want to go on and do things. Hopefully they will be aggressive and we won't need to wait long for the news flow.
Extension period work..??
Sad conclusion to my days with Ithaca. Unless that is I decide to retain my stake in Ithaca Mark 2 with 70% owned by Delek as foresight intends. I know Londoner was not in favour of this option but I am not sure why. How do others see the pros and cons. It could work out very interesting and lucrative if Delek decide to use Ithaca as an acquisition vehicle for their North Sea ambitions. With their financial clout, they could really milk the Stella Platform and make a lot of money. The question is how tradeable will they be on AIM with such a small proportion of available shares. I suspect the vast majority of shareholders will use the extension period to get out, leaving a very small rump.
The same as you were
Well ufck me, makes you wonder what the II's were offered behind closed doors.
By far the majority of people on these boards were against so where the 70% came from I don't know. But I think it's 50% as they already had 20% so they only just made it. It seems that the company will now continue as a listed company withe a 76% shareholder. I am going to stick with it and this could be very interesting. They will now want to get on and do things with no risk because Delek are behind them. I can't see any point in tendering now.
Guess we'll have updated flow results next week now, just to rub our noses in it?
70.3% of shareholders agreed with the takeover,what a joke ! All these years of waiting for c$1.95 !
Forgot to post finger bit quick http://web.tmxmoney.com/quote.php?qm_symbol=iae
do we not get to see who is buying and selling forgot this uk.
P i ss off the Delek offer and the canadian listing and solely go on the aim or even ftse sml/mid cap, get rid of the current bod and concentrate on growing IAE. Why should the PI's take all the pain and risk of the last few years and then be told "sorry no cream for you"!! Delek have not really done anything for us. They provided a bit of capital which we used to reduce debt at a convenient time. IAE would have survived without it and be in the same position we are now anyway. IMO Mostyn
Over two months since start up news, but nothing on current flow rates. Will it be a fail, more likely 10 more days RNS?
Yes Delek can not buy any more so they will be at 19% until the tender closes in 3 hours. Then they can only buy if they are successful in getting over the 60% threshold tendered. They can extend the offer period but would expect that to be accompanied by an increased offer. If they are successful then they have to extend the offer for 10 days. In the event of a failed bid I wonder how low the SP wil go and when to step in to get more. I would think there will be significant support at £1. There needs to be some more regular updates on the commissioning of Stella imo