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Why do you think the Majority of Trinity's S/H are unhappy.
The Market is yet to Comprehend how good this Aquistion will be be for TXP .
Massive cost savings alone.
If this was just as good for TXP as for TRIN both shares would react the same way. Or Trin would be up 40% and TXP up 10%, reflecting the relative size. Honestly, 25% dilution on a low and undervalued SP isn't something you can "wash" into something brilliant. Timing is wrong. Management focus is wrong. TXP have plenty on the plate and not delivering on anything. They've not even an overview of the assets they'll be developing the next 5-10 years. This is buying a cat in a sack. If TXP were trading @ 1£ and had Cascadura in the bag it would be fine. The assets TRIN brings to the table is a passive tax loss; I doubt we'll see much growth from their assets the next decade. There's a reason TRIN SP is low. And another reason why TXP is trading at this level AND THIS EXACT acquisition just proves what issues PB has with keeping focus and delivering on promises.
Who is to say that the TRIN SP wouldn't be twice what is now in 6 months time, and require just as much dilution at that point?
Sturm, if you research Trinity you might change your mind about the acquisition. It is an opportunistic bid that will literally pay for itself in less than two years. Its a complete no brainer for TXP, but as a Trin shareholder I am not sure I am really keen on it. Its very interesting that both parties think they are getting shafted when in fact, with the synergy of less overheads and the release of tax losses, value will be unlocked for both...but I feel Trin should command more than 60p and expect there may be other bidders coming out of the woodwork now.
U discuse pros and cons and i added more. If deal wont be accepted i get disconted shares if not value of other company added on to txp with 25% dillusion. Both companies took a hit this year.
At this level i keep buying.
It’s a strange reaction but not unexpected in AIM. If it was really that bad the price would have moved further down double digits.
Yes there is some Dilution but if you are looking at this long term the synergies are smart and this makes TXP the go to in the region and all the equipment is in close proximity for operations.
Anyone expecting a short term kick will be disappointed but long term very good for TXP.
If they can get the “wall of cash” delivering then multiples will have been increased.
Thought crossed my mind, our share price kept artificially low, past months knowing this deal coming to the table.
Wouldn't it make more sense to keep the TXP price higher, to look like a better deal for TRIN?
Would expect an interview from PB after such news...?
I think the only people who are salty about the deal are TXP holders who bought in much higher and are upset about the dilution at 40p. Anyone with an objective view can see this deal makes total sense for all involved. Provided it gets accepted touchstone will gain $200 million worth tax losses they can use for offsetting to pay less tax. I have a target price of £1.50 here over the next 3-5 years
Before today's news I had at least £1.50 as a target price for end of 2025 linked to the Cascadura field development which should generate c.£100m operating FCF pre-tax at full capacity. Now with the dilution associated with the potential deal announced today I'm not sure as the value that comes with Trin that should much more than cover the costs of dilution seems likely to take longer to add full value. Potentially much more than £1.50 to come within the next 3 years, and definitely within the next 5 years. Sore point that in early 2021 the SP was almost £1.80 briefly.
"I think the only people who are salty about the deal are TXP holders who bought in much higher and are upset about the dilution at 40p."
I hold TXP AND TRIN from much higher (but in different accounts), not sure what to make of it.
Trying to work out if I'd be better off selling one and buying the other rather than waiting for the deal to complete.
Time will show this to be an amazing deal for TXP shareholders and the market will wake up to it once they understand our plan the the synergies etc
The acquire 9/10 will fall until the plan.. not many T/O of small oil and gas companies BOTH rally on the news... or do you have any examples as I don't remember seeing even 1.
How will we ever see the wall of cash if they keep spending it. This is my worse performing share ever get me to £1.00 so I can bail and invest the money somewhere for profit.
This will get to a £ then your be staying for sure .
I will carry on buying for sure there's a very good reason for this Aquistion PB is not stupid
Climbingwooster- how much have TXP supposedly spent when it’s an all share offer? Secondly if there’s companies that are going to make you a profit why wait for TXP to rise? If you’re so sure and these other companies take the loss from TXP and buy them- they’ll make you the money back with all their “profits”????
Not a chance I could have sold at 1.40 but didn't I got greedy now going to have to wait another 2 years.
Johno it's still dilution and thanks for your advice but I never sell a share at a loss.
MMs want all my holding never seen that before
Txp combined with Trinity bought cheep both companies will kick on fast .
What all 10 of them? ;-)
Put it like this I bought at 52 ish an I'm down 17k
But no winning from me
Pay ya money you take your chance.
Did hurt a bit when I average down at 42 the day before the Aquistion .
Anyhow won't be long im back in front...
Yes I agree no winning from me either
Lol Whining
Get in Hex recover some loses why you wait