Member Info for Dumbly

As Hitman said, it is an Open Offer not a Rights Issue.
"A Rights Issue and Open Offer are used by companies to raise capital by selling shares, however with an Open Offer you cannot offer to sell the right to buy the shares to anyone else, whereas with a Rights Issue you can."
So if a shareholder does not take up their quota then they cannot sell their right, but will AB agrees to cover the "missing" amount with a loan (presumably on "reasonable" commercial terms).
We need the details of the Open Offer and AB's loan conditions.

Of course Pis can participate in any RI. Otherwise would be too easy to screw PIs/minority investors. The question is at what conditions the RI is proposed i.e. what is the dilution.

Shaq,
"The equity raise is no major issue, Amjad and co will mop up most of it, what more do we want than a CEO who’s fully invested. £50m is no major dilution for the opportunities it provides going forward."
Yes, as long as the dilution is commensurate with the benefits it provides, and the range for opinion and interpretation on such a matter is wide. AB and company probably have greater dry powder and firepower than many PIs, so attributing an exaggerated value to this £50m for the company could see some PIs squeezed out.

PYUECK, maybe not a vote-winning view, but you pretty much nailed the situation.
In addition, an industry-wide narrative is needed to show how oil will help the green transition so oil can be seen as part of the solution. This narrative is being created but not so clear yet and not being heard by investors. Once the fundamentals for oil are back, agreed TOM8080, the hearing will be easier. Enquest needs to create its own “part of the solution” narrative to integrate with and compliment the industry-wide narrative (Chilting, maybe carbon capture could be part of this). Institutional investors are essential for Enquest’s SP to really take-off. And that requires fundamentals and a narrative they can hide behind to justify their investment
However, above all, the Enquest-specific situation is as PYUECK outlined.

Thanks, Romaron.
How can the value of the tax credit be greater than the tax credit itself (currently around $425 million)? If anyone could help explain the real value of tax credits, it would be useful.
Good luck all.

Romaron, or anyone else, help, please, to understand the “real” current value of the tax credit. Enquest’s tax credit should now be around $425 million (219 results = 303.5m, 2020 half-year results = 71.5m, July to-date estimate = 50m). Agreed? The “value” in these credits can only be realised at future points should Enquest have usable profits, or if Enquest is bought by a company which can use these credits. Correct? What is the likely “real” value of these credits. 100% of the present value if Enquest uses them discounted by the probability Enquest could eventually use them? If Enquest could reliably evidence the strong likelihood they will use the credits would they be worth approaching 100%? And if Enquest was bought, the value would be subject to the negotiation positions of the 2 sides? Is 50% of the current actual credit a reasonable guesstimate in this circumstance? Or does it all not work like this? Thanks.

Hehehe, Romaron, I'm with you on the detail/short life trade-off. You've helped me tho with the detail I needed and thanks to that I now understand as much as I want. Enjoy the rest of the weekend!
(The 15/2/22 date is what they show as the maturity date here https://www.londonstockexchange.com/stock/ENQ1/enquest-plc/company-page)

Romaron, I've got it now. Thanks for explaining, appreciated.
(Are they, tho, using 15/4/22 or 15/2/22?)

Hi Romaron, and thanks for your reply.

I took the 33% YTM from here https://www.londonstockexchange.com/stock/ENQ1/enquest-plc/company-page. Could the difference between 22% and 33% be due to the extra shares issued in kind each 6 months? The extra shares work, as you say, as interest, but the result is the total number of shares generating interest is greater. It would be the same I suppose if the interest was actually paid and re-invested in new shares.

If each share which now costs 65.5p would be redeemed at 100p then that would represent an additional 53% growth. Add the interest component, using 33%, the total return between now and October 2023 would be 86% or around 26% per annum. That’s what I understand , but happy to be corrected if this is not the case.

Some help, pls, from those of you who understand the Retail Bond well, and specifically whether an investor would at the bond’s successful maturity get both the interest and the capital gain on the share? Maybe this answer has already been given in the thread but I am unsure of some of the meaning of some of the terminology.

Currently the RB can be bought at the offer price of 65.5p. It attracts 7% interest per annum either paid in cash or in kind in extra shares. Almost certainly the interest will be paid in kind. It matures at the dates and conditions shown in this thread. Most likely it will go to the latest date possible, 15/10/23. When it matures it will pay the accrued interest, including the interest from any extra shares in kind accumulated along the way. The current Yield To Maturity of 33% is just for the interest element?

My main question is whether the bond would be redeemed at the price one paid or at the original issue price of 100p i.e. for each share purchased now at 65.5p would there also be a capital gain of 34.5p? And, any extra shares accumulated in kind would be redeemed at the offer price when they were allocated or at 100p?

Thanks.

Hi romaron, londener7, and thank you for the info you provided and your thoughts, which are helpful in understanding and trying to gauge, as you pointed out romaron, how robust the company is WRT withstanding temporary pressures.
The A&SB Foundation's ongoing purchases certainly indicates the person who should have the best knowledge believes the robustness should be sufficient.

Appreciate you’re not sure of the hedging situation either. It would be good to know if the “hedging” used to mitigate the difference between paper/screen and physical is completely different from or using part of the 4MMbbls hedged. Would also be good to know the premium Kraken is getting (must be “quite big” to exclude using any of the 4MMbbls hedged on Kraken oil?). In the Q&A session/transcript IMV they came across as not being clear about real prices obtained or how much of available hedging used/remaining. Considered commercially sensitive information, so they did not want to be too precise? As an analyst I would view the clearer the situation the better I could make an evaluation, and if in doubt I’d feel miffed and err on the side of caution in my targets. And given the current “existential” situation, as a LTS it is info I would like to have to be able to make… better informed decisions.
Is it reasonable to expect to have more clarity in this area of actual price received and hedging or in this particular moment is it better they keep their cards close to the chest?

londener7, I took the 12% from Schedule 1, page 49.
Even if there was storage capability, would Enquest want to use it? Better to keep some cash coming in than nothing... Especially if the view is correct that land-locked producers are going to have their production shut-in before long, if not already.

Does anyone know if Enquest's purchase of BP's interests in SVT* and its Operatorship of SVT give Enquest any priority/privilege in using SVT's storage capability and, if yes, whether this is likely to have any real/significant benefit for Enquest?
*12% at 24/1/17?, see https://www.enquest.com/fileadmin/content/Corporate_actionsPDFs/Rights_Issue/SPAIncludingSchedules.PDF
*

Thanks, MaxDoom. I don't know where to get the Blue Form, I can't make the meeting, and I don't know anyone going to give a proxy to. I did vote on H/L. For the record, I would have voted... No.

If you can help me pls. I extracted one share from HL and I have just managed to get my Investor code and I have registered an account at https://www.siriusminerals-shares.com/home. I am outside the UK and will not be able to attend the meeting next week. How can I vote? Online? Only by proxy thru someone attending the meeting? Thanks.

If you can help me pls. I extracted one share from HL and I have just managed to get my Investor code and I have registered an account at https://www.siriusminerals-shares.com/home. I am outside the UK and will not be able to attend the meeting next week. How can I vote? Online? By proxy? Who could vote for me. Thanks.

Honestsiriushold, see Edulis' comment. His view is that the FL does not sing until the Court approval Hearing meeting.

Oops, seems it is the other way round. HL say "The Scheme will be approved if Shareholders who represent a majority in number and hold at least 75% in the value of the Shares voted, vote in favour. "

Concerning the share certificate number and investor code HL just informed me:

With regards to casting your vote with Link Registrars, we are under the impression that shareholders can provide their secondary details in order to place the vote, and shouldn't need any of the details on the certificate. As long as your name is a registered shareholder, this should be enough for Link to place your vote.