Member Info for JenniferE

SK, read page 12, you can bury you head in the sand if you like but the implication is very clear! Fortunately there is no chance the merger will be voted down!

Have you actually read the prospectus? It makes it very clear that creditors have a charge over most PMO assets and a no vote will most likely result in the shares being worth nothing!

https://www.premier-oil.com/sites/default/files/files/201216-final-prospectus.pdf

Pmo has always been held down by the weight of debt so I would say 22p is more a minimum rather than a maximum. Also the new company will have better management and that counts for a lot.

SK is wrong because when you compare the companies you need to look at enterprise value not market cap. Enterprise value is market cap + debt so pmo has an enterprise value of over $2.2 billion.
Applying SK methodology then the enterprise value of the merger group should be 2,2billion * 240/60 =$8.8 billion.
The merged group will have debt of £3.2billion so take this away leaves a market cap of $5.6 billion. That is £4.2 billion or 22.5p per share.

SK is just making stupid posts to wind people up, he should be ignored!

They'll work through to Xmas eve if they have to to get the prospectus out! I've never known Premier oil to be early delivering anything!

NOFEAR, the article you link to is factual based on numbers from a few months ago but their is no forecast of 37p! Where are you getting this number from?

There seems to be some misunderstanding on comments on this thread, there is no exchange on old shares for new. The number of shares you own after completion will be the same as the number of shares you own the day before completion. That is happening is that a lot more shares (about 19 times current number) will be issued to bondholders and Chrysoar shareholders. There are now 926m shares in issue, after completion there will be 18.52 billion shares in issue!

To be honest I'd prefer the share price not to rise at the moment. The higher the share price the more likely bondholders will go for the share rather than the cash option and we end up with only 5% of the company instead of 5.45%!

I believe the target is March but they are extending the duration of their debt so it could go beyond May!

Assuming the deal completes March-April and air travel is returning to normal then I'd expect 35-40p.

Antigua, No, creditors who receive shares are not required to hold them for a year! Those holding more than 2.7% of the debt are required to hold for 3 months, those holding less than 2.7% have no restrictions.

Whilst probably not a bad acquisition it is neither alternative or long lease. It will help with returning the dividend back to 5.5p but I hope having retail in the portfolio doesn't increase the discount to asset value!

I do think once the deal completes and assuming the vaccine works and is rolled out by spring then by comparison to similar companies pmo is worth at least 30p. However, I see no incentive for the price to move strongly towards 30p at the moment. As well as the risks of the deal not completing (very small) and risks with the vaccine roll out or opec there is the fact bondholders will end up with 10.6% to 18% of the enlarged company. Most bondholders will not want to hold shares so there will be heavy selling after completion or shorting before completion. The largest bondholders are prevented from selling for 3 month after completion but most don't have any restriction.

No it doesn't need to close before the merger. ARCM are bondholders and they will be receiving shares for their bonds which will then be used to close their short position..

There is no exact date just sometime in December, probably late December!

No, because creditors want their money back and there is no possible way PMO can repay $2.3 billion in May next year!

It's quite possible the Quilter were one of those that accepted the offer, they had 10% of the shares and I'm pretty sure it was their selling that pushed the shares down to 50p recently!

No it won't be suspended Fugu, you are talking utter rubbish!