Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
With so much free cash flow and no dividends, MTL could buy the Philippines!!
A capital raise is less likely than a public pork chop barbecue in Riyadh - it ain’t going to happen!! 😂😂
There is plenty of time to purchase existing mines and develop new sites in the longer term.
The only way this works is if you get a 5% premium on the shares sold and an additional payment included which is equivalent to the forfeited Divi. That appears to be II’s take on it but nothing said about this in the company circular.
The only way this tender offer would have made sense is if the dividend had previously been waived regardless and investors were being offered an above market price for their shares in order to tempt a sale. As it is, DEC are using investors’ $42 million to buy shares off them to that value. It’s no different from going into a shop, opening up the till, removing $200 and then tendering the cash at the same till in order to purchase a pair of $200 shoes from the same shop !!
Barking mad 😂😂😂🤔🤔🙄🙄🙄
All very interesting I’m sure but completely irrelevant to this board and dare I say, boring beyond measure.
It’s not surprising the tender offer caused confusion and particularly amongst ordinary PIs - it made no sense.
Even II got it wrong in their communication to customers.
I’m not sure it’s helpful to wear the cloak of superiority and fire off snide remarks but hey, each to their own!!
I can't see it makes any difference whether an investor is a PI or an institutional investor. The principle is exactly the same.
DEC can either give me the divi or reduce my holding by an equivalent value and pay me for them using "my" divi.
No wonder II didn't interpret the circular quite right - bizarre is an understatement
OK . . .Have just read the circular, or at least, the relevant sections and now I really am confused.
I won't be tendering any shares for sure but either way, this exercise makes no sense whatsoever -
Option 1.
If I have a thousand shares, I can keep them and receive a dividend of £680 or . . . . . . .
Option 2.
I can forfeit "my" £680 and let the company use "my" dividend to buy "my" shares to the total value of £680.
Option 2 is just plain nuts!!! Why would I let a third party use my money to buy my assets off me?? you couldn't make this up.
OK. . . . so the price to be paid per share is the average price over a stated period prior to enactment of the offer plus a premium of 5% but . . . . .this is irrelevant. The price paid dictates nothing more than how many shares are removed from my holding (that already belong to me and are effectively being bought with MY money!!) - I will still receive the same payment of £680.
So, let's go off the scales for a minute and say that leading up to the enactment date, DEC shares do great and instead of selling for £10.00, they are now selling for £340 per share. In this case, I would lose my dividend entitlement and two of my shares, for which I would be paid £680.
Option 1, I keep 1000 shares and receive a divi of £680.
Option 2, I end up with £680 in sale proceeds but now have 998 shares.
Where is the logic in this?????
Clearly, at today's price of circa £10, I would be losing 68 shares and so would receive £680 but my holding would be reduced to 932. In either option, I am still receiving £680, the company is returning capital but in option 2, I'm being robbed of my holding . . .duh
Do I stick or twist??? :-)
As I said earlier . . . economics of the madhouse. Why would anyone even consider this??
Clearly it is nonsense to suggest that you receive payment equal to the dividend being forfeited and for so doing, you lose an equivalent amount of shares. Come on guys . . .that is the economics of the madhouse. . . . pure psycho babble.
I have posted below what II have stated and it makes perfect sense.
For those shares successfully tendered, you will receive payment at slight 5% premium in addition to a cash payment equivalent to the dividend being lost.
If this were not the case, no one with a brain larger than an amoeba's left gonad would consider tendering so much as one share.
It's all below - simple enough
Important information about your stock 6 March 2024
A corporate action is taking place in relation to DIVERSIFIED EN CO (stock code BQHP5P9), which you currently hold in
your portfolio (a/c 2232194). Please read this notice in full and make your election by 22nd March 2024.
What is happening?
Tender Offer
Ex-date: 29th February 2024
Record Date: 1st March 2024
Tender Offer Price: Cash in GBP per share, at a rate to be determined by the company.
Pay Date: 28th March 2024
Diversified Energy Company PLC has announced a Tender Offer as part of a Return of Capital to shareholders of
approximately USD42 million, in aggregate. The Return of Capital allows shareholders to be paid the same total
amount of the company’s previously declared Q3 2023 dividend while providing the choice for shareholders to receive
that payment in the form of a cash dividend payment or a cash payment as consideration for the purchase of their
shares in a Tender Offer.
Your options are:
OPTION 1: Do Nothing (Default). You will keep your current holding if you take no action. You will be paid the Third
Quarter Dividend of USD0.875 per share on 28 March 2024.
OPTION 2: Tender any or all your Shares. You will be issued with cash in GBP in exchange for each share, at a rate to be
confirmed by the company. Clients who elect to tender will waive their entitlement to receive the company’s upcoming
Third Quarter Dividend of USD0.875 per share on 28 March 2024 for the portion of their shareholding successfully
tendered, however the Tender Price will include a premium equivalent to the amount of the waived dividend payment.
The proceeds for both options are expected to be paid less US withholding tax the same at the applicable rate.
Further information can be found in the company’s offer circular available here:
https://ir.div.energy/reports-announcements
The official pay date is 28th March 2024 for both the Tender Offer and Dividend. Payment will be issued as soon as
possible following receipt.
032TD01_RUN17592_TDW_GV_ONLY/001270/001273/SG601//i
We'll submit your instruction to the company before the official event deadline. Your account will be updated upon
receipt of the proceeds but in some circumstances there may be delays in the proceeds being credited to us. Please
allow 10 working days for your account to be updated
And what I should have said but omitted . . .
Up to the limit of the available spend for the buyback which will be pro-rata depending upon how many investors "bite". What I should have said is that all shares SUCCESSFULLY TENDERED will be "lost" as they will be purchased by the company and we will receive payment for the shares (including a small premium) plus payment in lieu of the lost divi.
I just read the corporate action notes which I received from Interactive Investor . . . seems pretty clear to me and I can't quite see why so many peeps are bamboozled by it.
1. DEC are offering to buy back shares from all holders through a tender process
2. Shareholders can tender none, some or all of their holding but . . YOUR ARE SELLING YOUR SHARES!!!!
3. Any shares you sell back will lose the associated dividend entitlement from when they went ex-dividend on 29th Feb and so no dividend will be paid.
4. You will receive payment for your shares at a rate to be decided by the company AND an additional payment equivalent to the lost dividend.
It's just a simply return of capital, somewhat complicated by the fact that shares are ex-dividend during the buyback.
So . . . .
If you tender 100% of your shares - DEC will buy them all off you and you will lose the lot - period!!!!!
In return, you will lose the dividend payment due on 28th March BUT . . . . the money you receive for your shares will be at a "rate to be decided by the company" - likely to be market + a small percentage AND you will receive an additional payment for your shares equal to the dividend you have just given up.
I have spent the last couple of hours reading through the most confusing posts I could ever imagine.
If you tender your shares . . . YOU WILL LOSE THEM . . . YOU ARE SELLING THEM - PERIOD!!!
I won't be tendering any of mine for a small premium, I would much rather hang on to them thank you and particularly after the savage drop over the last month or so which has cost me dearly!!!!
You need to pursue this. I'm with ii and also completed the W8-BEN online. My WHY with ii is now only 15%. I have my holding in an ISA account and so receive divis in sterling. When I held them previously in my trading account, I was paid in US $. There might have been an option to elect sterling but I don't think so . . . it's automatic for the ISA for some reason
DEC pay their corporation tax to the IRS in the USA and as such, all dividends are taxed at source at 30%, which is the standard rate for the USA. If you complete a W8-BEN, the reciprocal taxation agreement between the USA and UK reduces the taxation rate on dividends to 15% instead of 30% but this will occur, regardless of whether or not you are invested into a trading account or ISA. As the tax is deducted by the IRS, I suspect that SIPPS are subject to the same 15% and was surprised to see an earlier claim that SIPPS are zero rated for tax . . . I would be surprised if this is the case. Clearly, if you are holding your shares in an ISA, there is no further tax liability over and above the 15% deducted at source . . . or at least, that is my understanding following an enquiry to Interactive Investor through whom I invest
Many thanks Tibbs
Hi - hope someone can help me. I’ve been invested in Centamin for a yr or so but recently topped up. I noticed my contract note from Interactive Investor had the “Type of Trade market” shown as Venue ID XLON and yet I had been charged no stamp duty on my investment.
I rang Interactive Investor to check and was told that Centamin are AIM-listed which is why no stamp duty was payable.
I have just looked on the Stock Exchange website and Centamin is shown as “main market” with a market identifier code of XLON and not AIMX. Should my transaction not have been subject to Stamp Duty???
This isn’t the only purchase this has happened with (the latest being Petrofac) and I would like to know my ground before speaking with them again.
Other Companies I have invested in which are definitely AIM are correctly shown as AIMX on the Interactive Investor contract note with no stamp duty payable and still others also correctly documented as XLON such as BT.A and stamp duty charged accordingly - can’t work this out??
Can anyone tell me why I wouldn’t or shouldn’t be charged stamp duty for buying Centamin shares?
Thanks in advance for any helpful comment. . . . .
I'm over exposed here and so have a limit sell set at 8.00p in my ISA. Still holding just over a million shares in my trading account though which I've had since 2016. Will give me a free ride from hereon in and so I can enjoy the ride. Worst case scenario . . . . . I break even. I've crashed and burned too many times in the past to take this as a given and if it was and there is no risk, we wouldn't be sitting here at sub 8p. Oh how I wish I had topped up when we were down at 0.25ish - Fingers crossed . . . . . . . . .