Member Info for Infor

Cavendish's accounts - looking at notes regarding tax losses and allowances on page 38. Doesn't seem to tie up with what Mitch claims in his statement. Need to read some more. Not sure your link works NewKOTB try this:
https://s3.eu-west-2.amazonaws.com/document-api-images-live.ch.gov.uk/docs/t4xJggWesEur4pkQaRDy-PL7JTwM1FLoi9I9PoY-r3c/application-pdf?X-Amz-Algorithm=AWS4-HMAC-SHA256&X-Amz-Credential=ASIAWRGBDBV3MPL2SCHE%2F20221230%2Feu-west-2%2Fs3%2Faws4_request&X-Amz-Date=20221230T121215Z&X-Amz-Expires=60&X-Amz-Security-Token=IQoJb3JpZ2luX2VjECoaCWV1LXdlc3QtMiJHMEUCIC9WfAA8DmP4vWtl%2B5mQyZCbIaVsXg1LSCUixKeFqXDBAiEApHNvDNiKFZkJbtr7CTA%2BK2i3QObjCbT5%2FcI2bHjVuvQqzQQIchAEGgw0NDkyMjkwMzI4MjIiDNFapck8WTBF5FHjjCqqBLUA0UOil4wVWcSUJyn4oOhEztBCnVQ%2BgBu6ptyuUaB30uLAONsILTeOEisUTrmPzmdad90y5LlCcMLmzz30l7pr13RPYZVX17Mu%2FqbCZsYDuH6siHinEVl1FluQVUyGPejKj7wOSOXCF%2BjHM0e7nuintyOKDZJ6PTKt%2BywVEvjGAMZklheqj75dmXSfokAUdL7aKHBm5vn5qUodu0wP0OhujyWdFAUwIaCkaEoTAPX0esdDC0zP%2FeHnfkF13wRoGxkRjQFdeN2NxkEu1DXGbjxCYtpleoQ13IzuoVF9HpHcC%2FDBgfH155h9yNRfA4cjqz4V9qu6Ha9f3kbFgYlUNrwNjkcstraUUovQE0IEPZ%2B%2BjBie7NV2Ryx%2BOXsdPNVYVGd0uuIgATFeIgKdcXVYsDTvAEgFa8sthzirshUuFUKsU477xyNb8c%2F1pFY%2FPSaNngxqaug8bXUkrZa%2BW6hsh5jdwr9PYsyq903DJ0QXyIOYVyOZbymCTvi66nJtKaJkSwCD0sgKJcyPb1dVpVZif7Q%2BDkQmWhVekzf5f%2B3NaS2yBGCBo48D0IQNsHwS0he4N6u41OfbnJ3Rny23RZXs60Pjm4nqWOW6L6whvRqcc1eBlBTrmhXYOOeK%2B0K6Ytgv3fzYWJk7PaeoW%2B2NLYOxYes2tr%2F%2BKCXEIRxN4Askw2nQCUfKtzWQ8HDBSgZzhX6KJITvYXg%2FgR1E8tNVCHMsit6FrMyILQqQbvf3MLHcup0GOqkBC2gt94ANXGZ8a%2FSgPhdtTdHrKNnMLa8TOw0yy6zLS72aveE8%2FZLGUR1D559o3z6nBa%2Bb0kUaBfegiwbsNhhdY56JcPWNFUTrBnSeUFxf7BC60G8ow6snLMtsvbJMyZDpGhccVRZgzA7BA12NUN0zh71Lsb%2BcKQi7ncoNly1IH7W2mQ7a8RbEWEidyQ6APGK5ANUQTiqeu6h4p4TA1qbktPhW3plklq2zRQ%3D%3D&X-Amz-SignedHeaders=host&response-content-disposition=inline%3Bfilename%3D%22companies_house_document.pdf%22&X-Amz-Signature=8e65b73bba3191eff0d2a20546704665472ad7280f2e00a82ca73875283b3f6a

Being doing some digging. Mercuria do not hold more than 50% of Tailwind according to Companies House, this honour belongs to Cavendish Energy Holdings Ltd, so in the announcement it states 'As part of the Transaction, Mercuria, the largest ultimate shareholder of Tailwind, will become a strategic investor in Serica with a 25.2 per cent holding ' Is this true?
Are Cavendish receiving the £58.7m for their majority stake in Tailwind? More speculation to follow!
It's all a bit smelly to me.
https://find-and-update.company-information.service.gov.uk/company/OC430905/persons-with-significant-control

You could argue that this has been a disastrous year for Linda, of all the upstream oilers HBR is the only one other than debt laden Tullow Oil that's seen a decrease in it's SP of monumental proportions -13%. Compare with:
BP +44%
Shell +45%
HUR +107%
CNE +41%
TLW -18%
ENOG +50%
JOG +84%
A ineffective buyback thus far and you have to look at the disastrous involvement of unwelcome shareholders. HBR have to convince the market that they can provide that incremental value and shareholder return.

'Tailwind holds significant ring fence tax losses carried forward for future use' This is the key to this deal. We need it in black and white - how, what and when?
Mitch has not delivered given the exceptional trading conditions.

No buybacks for a while, could be for a number of reasons:
1. Security is required to cover future period gas price hedge valuations
2. Announcement of a bumper final dividend
3. Repayment of loan
4. Counter offer for SQZ which is in the process of being given away
SP is crazy low, Linda will need to deliver on incremental value and rewarding shareholders soon

Thanks Barry, someone with experience - it did seem a bit smoke and mirrors the whole thing. I have posted your appraisal on twitter #SQZ if that's ok.

Got the link?

There's been a deathly silence from Mercuria in all this. Looking at their recent media notices they are securing more liquidity in the Company and any investments have been made away from fossils into clean/renewable energy. There motives are definitely not in the interests of the SQZ ordinary shareholder. This deal is a vehicle for them to clean their books of a debt laden business under the guise of a tax dodge for SQZ. So many unknowns here, other than Mercuria securing a dominant position in a business that generates their much needed cash. At the end of the day the SQZ board have not delivered on their promises of incremental growth and cash returns. Let's be honest this is what these limited resource upstream North Sea operations are about, not servicing and repaying someone else's debt. This has be voted down.
https://www.mercuria.com/media-room/business-news/mercuria-successfully-closes-oversubscribed-secured-revolving-credit-1

Adding insult to injury, all the Tailwind Board get a job, having received their share of £57m, plus no doubt participation in a nice share option scheme. Where is the SQZ. cash really going? This is a complex deal and I am not sure how Tailwind's position tax or otherwise is going to provide that return we have been promised. Mitch has failed to deliver thus far. We need a real time simple deal proposal with all the cards on the table. Having Mercuria on board who freely admit they are moving into clean energy at a rate of knots, you have to question their motives for this proposal.

https://twitter.com/surprised_trade/status/1605513824878166017/photo/1
Nice headline, but I am not convinced. Mercuria are hell bent on exiting fossil fuels asap and I don't think SQZ alone can make any meaningful progress into energy transition projects. These companies were all about maximising return whilst the reserves last for the benefit you would have thought of the shareholder. To many promises, false hopes just to parcel these two companies up for a dignified exit way down the line. Mitch must deliver on his promises of providing shareholder return through incremental value and on dividends now! So far zero growth over the last 12 months and tiny dividend.

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https://www.ft.com/content/6acbf2e0-9cf3-48e3-b00f-5bbe56873c8d





“Serica is a highly cash generative business and the question will be whether shareholders want greater near term returns, or support a larger, longer-term business with aspirations to do further deals potentially beyond the UK North Sea,” said Investec analyst Nathan Piper.

Mitch, you liar:

"Although it proved not possible to reach agreement with Kistos plc on the terms of the respective potential offers between the two companies, Serica continues to actively seek opportunities at both the asset and corporate level that would strengthen the Company, diversify its asset base and deliver incremental value to shareholders."

I suspect those xmas bonus share sales were timed just right - what about the rest of us Mitch!

If they don't release some of their cash to shareholders how on earth to they think their going to get away with this. Their other Institutional investors must be looking for the first opportunity to quit this.

Not just me:
https://twitter.com/BlakeFox7/status/1605550009855909889/photo/1

The BOD should be judged on the return they provide. Given the exceptional trading circumstances which probably will not be repeated, to see no growth in the SP over 12 months, a poxy 3.43% yield, I would say that was not a successful deal by any means. Who is this for? certainly not for the ordinary shareholder. It provides liquidity to repay debt which ain't Serica's, favourable tax offsets possibly which needs to e clarified in real bottom line terms and medium term diversification. It seems to me that Mercuria are positioning themselves to be able offload another debt laden 'commodity' further down the line. We need to see prospects in the short term of returns for the ordinary shareholder. All this cash is being soaked up. Are we going to see any of it? Don't feel like this has been my best investment.

In case you didn't see it; Mitch's presentation on the deal: https://vimeo.com/782935411

We are going to have to vote this down - investors are not exactly breaking the door down to buy these! Nothing in it for the ordinary shareholder.

So Mitch, 5.2% increase in SP in 12 months, with prices as they have been hardly anything to write home about! Market not convinced.

Pathetically low volumes, Board are selling their xmas shares...