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Hi Guys,
Forgive but been doing some due dil on Lekoil reading through the recent RNS around the recent fraud and understanding that Otakikpo is now delivering and generating significant income.
The one thing I'm struggling to fathom is the impact of the business not securing funding for the OPL 310 project, am I correct in thinking that the impact of the company not securing the funding (and the project not proceeding) would effectively be a write-off of costs incurred and the opportunity cost?
I'm not saying that's where this is headed as clearly the partner on the project is accommodating and may well grant further extensions if funding can't be secured in time.
TIA
Not related to the finance which is obviously the primary issue here but good to see Intu are trying new things to increase footfall and keep the centres relevant, not sure how much income this will provide though;
https://fashionunited.uk/news/retail/intu-to-open-uk-s-first-store-dedicated-to-online-fashion-brands/2020030347772/amp
A lot of further negative market sentiment for this share it seems.
One thing that goes for us is the timing of the RCF announcement RNS. The facility wan until 2021 so there was no immediate time pressure on agreeing a re-finance there.
Therefore I cannot see the BOD having progressed with it, knowing the £1.3bn requirement would be in the announcement unless they had it tied up, especially just shy of a week before results.
GLA, likely to be a bumpy week!
I know Wayne especially after the alREADY SALTED their chips in terms of dividends etc.
Plain companies are going to be facing a real PRAWN ****TAIL of issues as IAG reported yesterday significantly higher fuel costs.
All in all shareholders are going to be left living off CHEESE & ONION's if the virus spreads rapidly.
I've just brave or foolishly jumped in at 4.7, looking at the accounts it doesn't look like there's a liquidity problem with $53m cash and $110m inventories so my view is that gives time for either;
Sale of assets
Significant discoveries
Takeover approach
Any of which should bring the SP up from here, That's the plan anyway!
But this looks too good of a mining company when you look at comparable Mkt Cap in the same sector!
GLA
Is anyone else concerned about the share buy back here being classed as part of the return to shareholders?
Appreciate it buoys demand whilst is ongoing but until the company confirms their cancellation our shares are no bigger chunk of the company than they were before and equally when the divi is paid the company pays more of it to themselves.
They now own circa 7% of the issued share capital here.
The previous results were rock solid and the current market turmoil is great for business, so there's green arrows galore for me, however the feeling that the board are "up to something" leaves me a little anxious.
For clarity I hold at 880 from before the results so ever so slightly down here now.
Any insight from anyone who's been in a similar situation elsewhere would be much appreciated.
I know we all had fun today trading this but I'm struggling with what this company actually is now.
Surely as all of the trading assets now sit in Greenwhitestar (GSW) ESL is now an investment company holding 49% of a privately traded company?
As such the only income that ESL can generate will be dividends from GWS, but they will not be in any position to dictate dividend policy as this will sit with DBAY as controlling shareholder?
Therefore I don't see any possible way ESL can begin to pay off the £215m net debt?
Equally DBAY are likely to have an ambition to acquire the other 49% of GSW held by ESJ, as such by owning a good chunk of ESJ's £55m debt they are in a prime position to leverage this when ESJ are unable to repay, working with the other creditors to hoover up ESJ's 49% of GSW.
Not looking to de-ramp this but after trading this share today it occurred to me to question what this company now actually is?
I know that, which is why they'd only pay £300m for it, if a buyer could walk away from the debt this would be worth £6bn or so!
The market cap is shy of £200m, how could this BOD facing no real potential of getting themselves out of this mess not recommend accepting a bid equivalent to £300m for the entire share capital & faced with the choice of obliteration or a cheap sale how many II's would vote against it?
Different for the debtholders obviously they will no doubt want to see this go a different away as the asset values (even now) outstrip the debt.
You're right this absolutely should be suspended but it won't until much more damage is done I fear.
I held previously hoping for a bounce after the initial muddy waters short and the investigation was announced, sold out for a loss of a third when the shareholding issues came up, that was at £10.50.
This is now in chaos and nobody can truly say they have a handle on the extent and effect on share price, this is now as much of a gamble as red or black but with 0, 00, 000, 0000 & 00000.
Huge sympathies for long term holders who bought into what looked on paper to be a strong company, youve been defrauded and the auditors have much to answer for but will get off Scott free as ever.
The thing is a cap raise which raises £1.3bn also gives Intu that cash and head-room. Theoretically we're only at today's value because of the risks, so a cap raise of £1.3bn adds that amount plus any value uplift from reduction of risk so as shareholders we will go from owning 100% of a £160m company to owning 10% of say a £1.5/6bn business.
What I can't work out is who is going to invest £1.3bn to own 90% of shares when they could buy the whole business for £250/£300m tomorrow?
Good work! But with the levels of stockpiles I think it's a secondary issue to the ongoing DOJ conversations!
Gambling/Investing are one and the same these days, look at the "safe" FTSE 100 companies we've seen lose 90% of value over the past few years and the often "chequered" validity of filings. Even now look at NMC where their owner & the company have admitted not being sure on the holdings!
Hi Guys,
Apologies if I'm being thick here but having read the articles of Association published on 10th January of this year the deferred shares which the company has acquired for nil are of no worth as they are entitled to no share of the profits and will only partake in a bankruptcy situation once $1tn has been returned to the Ordinary shareholders.
Other than that everyone's shares are worth exactly the same proportion as they were previously?
I'm not sure why this activity makes you more suspicious that further share issues and cap raises are likely, they could have issues just as many new shares from the previous total surely? Is the concern now that a new issue of 1m shares has a much larger dilution factor than it did previously / surely this would have been reflected in the numbers of shares issued in any share issue anyway though (i.e. 1,000,000 new shares now would have needed to have been 100,000,000 shares previously to raise the same capital)?
Not on a wind up genuinely trying to understand what's at play here, can see that some of you appear to have been burned by a Director of this company elsewhere so I am wary and not likely to invest here but just wanted to understand the particular resentment around the share restructure.
TIA
These assets are definitely not prime retail parks, the other element of it is there is relatively little land value / development value.
I'd like to think that the development potential attached to many of Intu's assets due to their locations (majority in major city centres) should shelter them a little from yields at a comparable level to what these retail parks have been sold as.
Obviously Lakeside & Trafford, the two huge jewels are out of town but they have such critical mass that they could act themselves as centre's around which to anchor further developments.
Maybe I'm reaching for straws to clutch here but I would be shocked if yields for say Nottingham Vic Centre / Metro have slipped higher than 7%
I don't expect there will be anything in this weeks' results as their hands are probably tied by the outstanding trial, but presuming the case is settled sometime between now and the summer with a settlement of between $100 - $300m, have the company given any indication on what they will do with the $1bn cash they will have burning a whole in their pockets?
I know R&D for Pharma can be hugely expensive and tie up lots of cash but you'd expect some room in there for a return to shareholders, especially when they are likely to be growing the cash pile by circa $200m every 6 months based on current performance.
Thanks Spacetec.
Feels like a perfectly logical argument to me, but in no way am I an expert in US law and precedents in legals battles, I would've thought there is a basic principle that all evidence intended to be used in trial must be presented to the defence ahead of the trial.