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Notice that Nigeria's 'quota' has been increased.....
Considering our S/C is 770m will it still be deemed as a reverse takeover if we only pay a nominal sum which is less than our S/C thanks
I had to Google.
So I think the reason why it's a reverse takeover is not because of the size of the transaction (no shares are being issued), but because acquisition
"results in a fundamental change in the business".
Quoted from here:
https://www.handbook.fca.org.uk/handbook/LR/5/6.html
"an rto involves a smaller quoted co taking over a larger unquoted co by a share for **************"so i dont think it applies here,this is a cash deal
the missing bit "**************"
Sorry my computer has gone wonky
It has been increased, but not by as much as they'd hoped. Note the comment about Nigeria failing to meet previous quotas.
"Based on that it has given Nigeria a 2024 target of 1.5 million barrels per day (bpd), Angola one of 1.11 million bpd and Congo a target of 277,000 bpd, OPEC+ said in the statement.
In June it had been agreed, pending the assessments by the consultancies, that Angola could produce 1.28 million bpd and Nigeria 1.38 mln bpd and possibly as much as 1.58 million bpd.
Both have failed to meet previous quotas hurt by underinvestment and security issues.
Congo’s target for 2024 is roughly in line with what was agreed in June."
https://businessday.ng/energy/article/opec-caps-nigerias-oil-output-at-1-5mbd-in-new-quota-allocation/
Looking good again today maybe news coming very soon
SP is around £2.30 in Lagos. One wonders why?
Seplat is up 120% over past 12 months in Lagos compared with about 60% increase in London
https://afx.kwayisi.org/ngx/seplat.html
Nigerian main market, just for interest is at an all time high up 40% this year which shows a lot of confidence in Nigeria at this time
Tom, we know the mpnu deal is reverse takeover from the Seplat proposal. They knew at the time it would be cash deal and their lawyers will have written the proposal. You then have to ask why it's an rto when it's a cash deal and that's why I quoted handbook below.
Nigerian market has risen and so has Seplat share price in Nigeria. But Naira is down by more than half against dollar and pound. So much of rise
...is due to currency and inflation.
SKON yes but its not a change of business in the true sense of the word
But it doesn't say change OF business, it says change IN business. MPNU deal is massive change for Seplat. Not just size, but change to corporate structure. MPNU will be separate unit of Seplat (with its own board I assume).
Personally, I think its right that Seplat should publish prospectus and shareholders should get a vote. Companies shouldn't be allowed to sidestep consulting shareholders just because because they use cash.
This is my interpretation though, Investor Relations would answer your question I think.
The current +80% premium in the Lagos listing to the LSE listing is not only explained by "inflation & fx". For years and years (during inflation and falling FX) it traded at par, or near par.
While I agree with you that the local FX intervention in 2023 makes the official Naira look a bit overvalued, the black market rate was/is 1035 to the USD this week so it's still a hefty premium. I'm inclined to believe that local traders know something that we don't.
"I'm inclined to believe that local traders know something that we don't."
Yes, but then there has been the same discount to the Nigerian exchange ongoing for the entire two years I have been invested here.
Someone has just dumped some shares. Quite a drop!
"there has been the SAME discount for ENTIRE two years"
That's objectively not true: the premium (converted to GBP) is the highest on record and I've benchmarked several years back. Link: https://i.imgur.com/1PJ3CWB.png
Todays trading of 2310 equals 2.29 GBP. The parallel market, which has always existed, is lower bit still a hefty premium.
I don't mind if anyone here doesn't invest in the shares - that's totally fine. However, I would appreciate a standard on the board where everyone at least stick to the facts. Bless.
Sold yesterday that me out of all oilies now just dont like the sector atm.Gla
The SEPL share price has a very low correlation with Brent, for those interested. I've pointed this out many times previously. In my view, so long as Brent stays >$60-65, by far the primary drivers of this share will be everything else other than Brent.
A 33% correlation aka Seplat and Brent is highly significant especially given Seplat’s earnings dependency on oil while the black market rate gives a share price of 155p … where a 20% premium about right from memory.
The share has held up well … but looking around, I’m not tempted yet.
Tom111
Just like you sold out at 140 ish earlier in the year.
Very convenient to post sells at a later date.
Yes but you only talking a few pence difference so whats the big deal.Anyway i could lose out if the deal is struck it works both ways.
27th July i sold at 1.41 put that in your diary ncb