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Ok Plan A didnt work, but whats Plan B. Does AA have another acquisition in mind, unless the share price is just reacting to the crazy NBP & TTF gas prices, there does appear to be something stirring.
Possible targets IGAS, IOG, I3E.
The labour government will take all the money from oil and gas companies if they came to power, best to return the cash to shareholders asap before the government are pressured to increase the WFT.
Or better still, the government can take my shares for 100% premium after SQZ has paid out a special dividend
interesting comment from SQZ last night, although we have heard this many times before. However, the line that stuck out to me was "diversify its production portfolio"
Do they mean gas in a different geographical region or a greater mix of OIL & gas?
Also interesting that neither KIST or SQZ have fallen as much as i had anticapated but NewKTOB has summed up the reasons for that
"Serica will continue to proactively seek opportunities to utilise its strong balance sheet and operating capability to invest in its existing assets and diversify its production portfolio through mergers and acquisitions. The Serica board will maintain a balanced approach to deploying capital, including further capital returns, while factoring in the requirements for the ongoing business and opportunities for profitable asset and corporate deals."
Simple answer Sasa, there is money to be made, that’s why we are all still here. board done a great job with BKR but they haven’t shown any ambition of late and have been taken by surprise by the KIST offer - the worse thing is that they never saw it coming - everyone else did
Yes the SQZ BOD are a disgrace, they want to pay themselves big fat salaries and LTIP, as they are not major shareholders (apart from ACW) they are not interested in paying shareholders a “special dividend”. Don’t think they can stomach seeing all that cash going to shareholders.
I wouldn’t be surprised if they opted for a share buy back - now that really would be a disgrace
sasa, quite agree that both share prices will be hammered in the event of no merger and you would think that KIST would fall further, however, I wouldn’t put it past the market makers to punish SQZ even more
Surely the strategy would be to sell a hefty percentage of KIST & SQZ and wait to buy a lot lower in both
sasa,
if SQZ pay a special dividend, KIST will come up with a lower counter offer and as been explained the SQZ share price will reduce and attract bargain basement offers from other companies
b. if Serica announces, declares or pays any dividend or any other distribution to shareholders (in which case Kistos will have the right to make an equivalent reduction to the Proposed Combination Terms), excluding the Serica Dividend;
NewKTOB - you stated that
"Next offer will be for original cash 246p plus 0.4 Kistos share .... give it a week or two, that will convince the big players to swing his way."
What makes you so sure that this will be the case? My views are that AA is taking an almighty gamble. If he doesnt acquire SQZ, both share prices will be down signficantly, KIST probably more so. And if there is another player in the market for SQZ, KIST is going to come out worse.
Anyway, looking ahead to the winter, now is the time to take out any gas play.
Does AA have a plan B or C?
Pursuant to Rule 2.5 of the Takeover Code, Kistos reserves the right to:
1. Vary the form and/or mix of the consideration for the Proposed Combination at its discretion; and
2. Make an offer at any time at a lower value or on less favourable terms:
a. with the recommendation or consent of the Board of Serica;
b. if Serica announces, declares or pays any dividend or any other distribution to shareholders (in which case Kistos will have the right to make an equivalent reduction to the Proposed Combination Terms), excluding the Serica Dividend;
c. if a third party announces a firm intention to make an offer for Serica on less favourable terms than the Proposed Combination Terms; or
d. following the announcement by Serica of a Rule 9 waiver pursuant to the Takeover Code or a reverse takeover (as defined in the Takeover Code).