The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
Apart from the fact that even acquiring 100% of shareholders shares doesn't get them a controlling stake in the company, the CLNs can convert and that controls.
Jimmy - this has already been explained to you but, in the spirit of generosity, let's try again.
The 'book' value of the LOG loans are c. £40mm. IOG, when talking about see-through value are talking about the Value the debt in the context of converted CLN and what that equity would be valued at re. 20pps.
Of course, the IOG RNS explains that all fully but that would require the willingness to read.
All we need now is denzil to appear with his 239million "warrants" and we'll have a RRE full house.
Sorry bandit. Denziiil and Jimmy have spoken.
It's over :(
Jimmy - so you're saying IOG need finance to drill Harvey and do the development.
Thats mental. No sorry, I mean that exactly what IOG have been communicating for months. Are you on the IOG board you little devil?
Phenomenal to see so many shareholders of the greatest company in existence (RRE obv) clamouring over each other in total desperation re. getting IOG's assets, they must be seriously valuable or something?
Kerching.
Denziiil - do you know what a warrant is?
JRM confirmed RRE shareholder.
Ah, fair maiden, once whenth came a Knight called, by virtue of his preferred carsmith, Austin, not once, twice nor thrice did his bequeath descend within the locus of what the peasants call the domain of the Rose of Rock. The Smith of Williamson hasth by necessity conveyed to Sir Andrew his desire that he foxtrot Oscar whilst the boys with larger containers of gold depend upon the scene.
Thrice I tell thee. THRICE!
What good is 30% to RRE. To get control they, as far as I can see, need to convert some 19p CLN or buy in the market at, as everyone can see, more than 8p.
If the administrator was going to accept RRE's offer do you not think that maybe they would've now? If they're not accepting then does that not indicate that an alternative that would give them a higher return is pending?
Appreciating of course that literally anything could happen, and I include the administrators accepting the RRE offer within the next 10 minutes, it would be absolutely glorious if IOG we on the cusp of a refinance & farm-out deal that would re-value the business significantly higher than the c.20p that RRE are offering (£40mm for the debt, in terms of the number of converted shares they'd get is around 20pps).
Bondholders get a higher return.
Shareholders get a higher return.
RRE get a bloody nose.
We'd get to read posts on here like "well, I never thought the IOG assets were very good anyway. In AA we trust"!
Which terms is it that these lads don't see from the RNS'. All very dramatic and sounding a bit desperate.
The amount lent + conversion price is all in the PD. If they don't know already for sure that the conversion of the CLNs would account for >50% of the diluted equity then they need a new calculator and £500p/h lawyer!
Phenomenal - the RRE, you're lucky we're here to save you with a 20p bid, the financial time says, no chance of finance, same registered office, crew have returned. Please RRE, save us from our IOG hell *insert forlorn photo of IOG s/h looking wistfully into the distance*.
Trellis - I doubt any backers / farm-in partners that may join the IOG party would be interested in the Marathon assets RRE are in the the process of acquiring. Think EPL rather than Ryman League. ;)
Maybe just a transponder glitch ref. Marine traffic.
Else IOG are about to announce drilling is on as part of a finance re-org.
I'd imagine the former!
Hopefully we see three things:
1) LOG debt re-financed - LCF paid back the monies and LOG board reps gone, far far away.
2) Farm-out to Ineos. Fast-track project including Harvey appraisal.
3) Board returns to a semblance of sensibility.
Well.... 2/3 will be ok :)
The final page on the presentation on IOGs website explains.
Pick an arbitrary value, post it on twitter and messageboards. Instant gratification.
What are the assets worth? Pfff, irrelevant. All you need is a finger, some air and the ability to batter away on a keyboard.
So.. You're saying that if some random person on an Internet messageboard was the CEO of RRE you wouldn't have invested in RRE.
Not necessarily a bold strategy but I can get onboard with it.
Brilliant. We all need reduce our carbon footprint. Fantastic to lead from the front.
Is Andrew Austin in your pit crew?
I honestly can't believe IOG have had the audacity to reject RRE's offer. I mean, who the hell do they think they are rejecting Andrew Austin. They should be honoured that Andrew Austin have even glanced their way, let alone made a VERY generous offer for assets that only have gross value of c.£2bill worth of gas. What the hell are IOG playing at?
If I were Andrew Austin (one can dream) I would send one of my butlers to IOG's hovel of an HQ and demand acceptance.
Andrew Austin.
Appalling really when you think about it. Sort it out Hockey.
Well it's subjective. How could IOG say a timeline that is yet to be executed is difinitively untrue?
Same capex as they haven't sent it.
Same farm-out terms as no deal has been released to market.
All a game. If only we had Andrew Austin's genes.
The board and major shareholder, or would be shareholder, 100% control the outcome here.
Facts are both parties have rejected 20p. It's a vulture offer upon a downtrodden SP.
Tomorrow posting to save people the trouble of reading:
RRE are god.
IOG are garbage.
21p if you're lucky.
10p if you don't take the deal.
Bust.
RRE are Robin Hood, here to save you.
Andrew Austin fathered my child and I couldn't be happier.
Should be top.