look at Company Balance Sheet not Group - For $6.3bn13 Apr 2022 21:24
Companies can pay divi and share buy back and are not based upon group accounts. Look at HBR AR 21 pages 166-167 - Holding company BS $7.2bn, Share premium $1.5bn & merger reserve - shares $4.8bn = $6.3bn. HBR Holding Co only had $762m Distributable Reserves, so legally cannot achieve it's ambitions of +15% share buyback. Quickly I see 3-4 mega Positive things from this:-
1. Legally facilitates the commercial ability for HBR to pay future increasing divis and share buy backs
2. Normalises HBR Capital Structure - breaking the restrictive old merger covenants - necessary to be a true FTSE 100 entrant
3. Allows for greater access for potential M&A activity
Vote for it and 4th point Deal potential HBS & Dana
PS - I think there still is a deal being negotiated - Dana must be screaming for cash and KNOC want out of the North Sea, HBR have pre-emption rights on anything related to Tolmount
A. South Korean state-run Korea National Oil Corporation (KNOC) has launched the sale of stakes in a number of oil and gas fields in the UK, Dutch and Danish North Sea, according to a document seen by Reuters.
This is the latest attempt by KNOC to dispose of parts or all of its North Sea subsidiary Dana Petroleum in an effort to reduce its elevated debt levels.
B. As for the HGS system, under an innovative arrangement Kellas is a partner to Harbour Energy and Dana Petroleum in development of Tolmount. Harbour and Dana own the reservoir, wells and hydrocarbons, while Kellas and Dana own the platform and export pipeline. Harbour project manages the development, with Kellas assuming operatorship (ODE has responsibility for operations and maintenance on the platform). Cameron highlighted the low-emissions intensity of the platform’s power generation package as being “equivalent to a single modest car engine.”
C. UK energy security HBS - Gas pipeline infrastructure - surely must go the UK HBR. IMO DYOR
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