RE: Premier Oil shares surge on merger news.12 Nov 2020 13:45
Tight squeeze to new highs....
buy/ hold.
''Fortunately, that risk has now been eliminated. Today’s merger news means the planned fundraising is no longer needed. Instead, Chrysaor will repay Premier’s $2.7bn debt mountain and refinance the business more sustainably.''
Sellers out now, was looking for another 20k loweer12 Nov 2020 11:48
but not forth coming..../ sellers profit takers gone - not sure why anybody woudl sell here, and we have been offered 30p right, and good chance board agreeing a little more.
The current takeover agreement on the table is (read RNS):
''The agreement also effectively valued Premier's equity at roughly $280.0m'' - that's around 32p.
Thought i'd let peeps know what they buying - even @20p that's 50% discount. Following shorting since August/ Sept expecting the oil to drop but it held and gain instead. :) - Oil price was $40p back in August and ppps was 35p-40p - so expect the same price - and minimum 32p.
US oil production is down and current world production will remain for the foreseeable future - and economy will improve. So oil price will remain between £40-44 Min. SO all good there.
We have huge takeover protection, so not bothered about general oil price moves just want that 30p - which we get anyway, so anyone buying he is buy 32p @ price of 20p - due to the courtesy of short friends - who need to cover and go long to gain some value.
Plus shareholders and board have right to increase the shareholder equity with improved economic outlook.