The next focusIR Investor Webinar takes places on 14th May with guest speakers from WS Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
as already highlighted, there could be a 6 to 8 weeks delay to get the money. And delek are not owner until they paid, so, delek are not yet passed the 90% level that makes them eligible to trigger the forced sell at current mandatory bid offer price of $1.95... They can eventually proceed with another offer down the road at a lower price. But they take the risk again that not everyone will tender their shares, that crude oil price can resume climbing and that they will have to show Stella production in news releases under the exchanges mandatory rules. Instead of closing it now at current mandatory bid offer of $1.95...They have up to mid july according to my personal math. I'm not sure the actual average trader on IAE took the time to read the bidder's circular... All just my personal opinion, always do your own dd...
I wonder if IAE would now be worth a spread bet to go down now?
Thank conkersdeep
I asked my broker that same question and this is the reply. The average industry timescale for a corporate action to close is six to eight weeks from the closing date. This is an estimated timescale but depends on the company and when they decide to pay you the tender proceeds. As the closing date for this action was 13 April 2017 we are still anticipating the proceeds from Ithaca. You will see the proceeds in your Statements tab once allocated.
My shares were tendered and I cant find out where it gives the date the cash should hit my accounts? Is the deal not done until the shareholders get paid?
From Delek's bider circular, page 59, section 13: "If within 120 days after the date of the Offer, the Offer is accepted by holders who in the aggregate hold not less than 90% of the issued and outstanding Common Shares (...) the Offeror may, at its option, acquire those Common Shares which remain outstanding held by those persons who did not accept the Offer on the same terms as the Common Shares acquired under the Offer pursuant to the provisions of Part 16 of the ABCA (a “Compulsory Acquisition”). " A copy of the circular is available on SEDAR website: http://www.sedar.com/FindCompanyDocuments.do
I think that to force shareholders to sell - they have t offer the $1.95. Otherwise there is no way of calculating the price that should be paid. You do not have to sell your shares to Delek just because they delist. It would be ridiculous for Delek to have a small rump of private shareholders to contend with. So they either keep the listing and do not buy any more (seems unlikely given the small free float) or they offer to buy the shares over time (no rush) at the $1.95.
I haven’t read the circular but the drop in the share price suggests that there is no obligation for Delek to pay the offer price to those shareholders who did not accept the tender offer. Given that Delek now hold over 90% of the company they will apply to delist and the remaining shareholders will be left with shares in an unlisted company. Shares in unlisted companies are difficult to trade so Delek may make a further offer to the remaining shareholders but it will be lower than the original offer hence the drop in the share price. If Delek were committed to paying the original price to dissenting holder the SP would still be around 115-118p.
agree - I think Delek can force the squeeze now if they want to. I can't see the point in having such a small float so expect they will. But do they not have to buy at $1.95? So this represents a great buying opportunity? If so, why is the price so low other than there are few buyers?
Any ideas as a bit confused
Sdx undervalued producer, sqz undervalued and hedged at $50 oil.Sdx just drilled and discovered approx 250- 300 bcf of gas with 3 oil targets at lower depth and results imminent .Dyor.
If Delek decides to force out the remaining 5.8% of shares ((around 25Million) then they have to offer the $1.95 that was the original offer. However, given that they have 94.2% of the company, they don't have to force out anyone now. One could wait to see if another $1.95 offer is made to the remaining shares with the possibility that it doesn't happen or sell now with a 20% discount on the original offer. I got out in February on the first morning that the offer was made. My thinking was that with the oil market so weak and the NS out of favour that $1.95 CND would be as good as it would get AND IF the bid failed then the share price would plummet. If I were sitting with shares now then I would get out now and learn the lesson that a bird in the hand is worth more than two in the bush. Good luck on your decision. And so long to all. Its been a slice.
That or SAVP and 88E for imminent drills. 3 to 5 well campaign at SAVP starting H1 and 60% COS appraisal well at 88E spudded last week with two months to go. GLA
I was a lth of IAE, sold out in feb , Get yourselves over to SDX , Excellent company and a good time to get in .
I don't think so; the extension of the offer once it went unconditional was the compulsory bit. Now they have fulfilled that obligation they can do what they want I'm afraid.
Now that delek have 94% and they have stated before they would force a squeeze out can anyone answer the question asked by someone previously. Does the squeeze price have to match the offer price?
Thanks for that, just checked my account and yes I'm lumbered with the shares. I presume the large drop means nobody expects any decent offer from Delek for the shares in future. Does anyone think with Delek backing that the share price could recover or is a delisting the obvious outcome? Is there any need for Delek to offer anything reasonable for the 6% of shares not owned by themselves, I wouldn't imagine so.
If you haven't given any instruction to the broker then you are left with the shares to either sell or wait to see what Delek may give you for them if they delist the company from the market and take it private. I'm not sure that waiting will be a good move therefore,and I personally would get out as fast as possible. However that decision rests with you.
Hi, I have a few shares in this company and I have been out of the country for a few months. The shares are held in a trading account with TD Direct. I have missed all the correspondence on this and I sent no reply to TD direct before the deadline. Can someone please clarify if my shares would have been deposited and sold at the offer price or am I left with the shares and seeing a tumbling price. Thanks in advance.
SDX looks a much better prospect
ta
Most likely because Delek have over 94% of IAE shares so less than 6% in the market implying a delisting I would think.
thanks in advance
Thank god its finally over..no more tears!!
Nm.