Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Clog,
I saw your post only now. Please drop me an email on WENshareholders@proton.me
Cheers
Raggedtp,
A letter has been send, see link below.
https://www.dropbox.com/s/4pngvyzyjfj8wrf/WEN%20BoD%20letter%20final%20.pdf?dl=0
With link: https://docs.google.com/spreadsheets/d/1DI48Cy4X48MYQAadGcZ-liLfWtwTB6DexGCyVjHfrCM/edit?usp=sharing
Hi Patrick (and others), first of all, many thanks for adding your details to the spreadsheet! Please continue to do so! (link below). The spreadsheet will be used as evidence that many private shareholders disagree with the takeover, and of course we will try to approach various parties. The spreadsheet also makes it very clear to FIL that they can block the take-over, if they want.
It is by the way not true that non-UK shareholders cannot vote. I'm a non-UK shareholder myself (but not Norwegian) and after exchanging several emails with my broker, I have been able to vote in the past. My shares are in CREST though, so that could be a difference.
Still, I would strongly recommend everybody to hold on to their shares for now. You will get at least 32.5p for each of them, even if you do nothing at all. Management won't cancel the deal.
No idea Highyield, I don't know the Newlands. Do you? They still hold 3.7 mln shares if I read the RNS correctly, so it would be great to get their support. Fidelity remains key though, without them it will be nearly impossible to stop the take-over.
Simply Wallstreet also has some interesting "red lines" under the management part:
- Compensation vs Market: Roe's total compensation ($USD1.23M) is above average for companies of similar size in the UK market ($USD352.81K)
- Compensation vs Earnings: Roe's compensation has increased by more than 20% in the past year.
Good analysis! And now our CEO wants to cash her 9 mln share options... Management has been pillaging this company for years now, and they reward themselves generously for doing so. Life is wonderful!
https://simplywall.st/stocks/gb/energy/aim-wen/wentworth-resources-shares/management
I've updated the spreadsheet a bit. If you assume that all share purchases since 5 Dec. have been made by M&P (through various banks/channels), then we need about 25 mln No votes to block the take-over, at this stage. Possible if Fidelity supports it, but still far from easy...
https://docs.google.com/spreadsheets/d/1DI48Cy4X48MYQAadGcZ-liLfWtwTB6DexGCyVjHfrCM/edit?usp=sharing
Highyield, you are correct of course. I'm no expert in this either, but M&P has already received more than 40 mln shares as "irrevocable undertaking" and has probably bought a lot of shares already through various channels (banks / funds) that will support the take-over (most buys last week?) Most PI's will find it very difficult to even cast a vote, so if we really want to stop this, we need to get active. People must hold on to their shares and contact their bank how to cast a vote. At the same time, we need to get in touch with Fidelity, DNB and the other II's.
Disappointing support so far, and many small shareholders will struggle to even cast their vote. Looks like we don't stand a chance to block this without support from Institutional Investors unfortunately.
Sarta net 2P reserves are only 10 mln bbl. Peanuts. Net 2P resources are 79 mln bbl and that will surely reduce, but the value of resources is much lower anyway. But diversification has clearly failed, Sarta is small stuff. Only Tawke matters.
I've created a Google spreadsheet and added your names/# shares. See link below. Please add your name & number of shares you still hold, if you disagree with the bid!
https://docs.google.com/spreadsheets/d/1DI48Cy4X48MYQAadGcZ-liLfWtwTB6DexGCyVjHfrCM/edit?usp=sharing
A large number shareholders are seriously "dissatisfied" with price of the take-over bid, and want to block the bid at the upcoming general meeting. Don't sell your shares now! You'll get at least 32.5p per share if you wait a and perhaps even a lot more. Personally I see 50p as a good starting point for the negotiations.
Just don't sell your shares! Let me know if you are a larger shareholder (>500,000 shares) so we can connect and join forces.
Agree with Damofari, thanks for all the good comments.
Nightpusher, I'm indeed pretty new to GENL. The reason why I like the company is purely because of its huge cash flow and high dividend. 75% of production is from the Tawke PSC, which also carries ~80% of the 2P reserves, so Genel is practically speaking almost a single asset company. Sarta carries a lot of 2C resources, so if Sarta-6 is a success, then that could increase reserves quite significantly. My expectations are low though, given the failure of Sarta-5. I also expect very little from Morocco or Somaliland, to me that is all upside.
Tawke generates an incredible amount of cash though. I expect a net cash of about 210 mln at the end of this month, which corresponds with about 61p. Assuming 2P reserves of 93 mln bbl by the end of 22 (no additions from Sarta), then you're quickly talking about a NAV well above 6 GPB... That's more than enough for me, everything more is upside.
The only thing that really matter with this company is that the invoices get paid!
GLA
Tartine,
Thanks for commenting. I would expect that the PSC stipulated the the main scope of the expected development work, so in that case it should be pretty clear if Genel carried out the work or not. If work gets delayed (Covid?) or if the workscope wsa changed it obviously get a bit trickier. On the other hand, if KRG was hoping on a better deal with Russia, then perhaps they are now willing to reconsider...
Altogether I find the idea of taking your sole customer and partner to court a bit scary. I see that the trials start only in Feb 2024 , so, luckily, plenty of time for further negotiations. No concern therefore!
Nice one Highyield,
I'm very curious to hear if she responds. I fear though that she will simply ignore it. Management wants to sell as quickly as possible now, I suspect. Bob wants to cash-in his 8 mln shares and Katherine wants the superbonus for all her options. They certainly don't want any special dividends to share of (part of) the 30 mln cash amongst the shareholders, as that will make Katherine's options worthless and reduce the value of Bob's shares. It's almost criminal what they are doing, in my view.
Please share her response, if any!
Huh?? Did GMW asset management buy 4.138 mln shares yesterday?
https://www.lse.co.uk/rns/WEN/form-83-wentworth-resources-plc-wy69kvdwlkqe3w8.html
Does anybody have a view on why the Miran and Bina Bawi PSCs were terminated?
KRD stated that "Genel confirmed that it did not intend to continue to perform its obligations under the Bina Bawi and Miran PSCs, and purported to terminate the PSCs with immediate effect" (see link below).
Genel stated that the KRG terminated the Bina Bawi and Miran PSCs.
How much compensation does Genel claim? Any merits? Does anybody know if KRG pay Dana for their succesful (?) claim a few years earlier?
Just for background research....
https://gov.krd/mnr-en/activities/news-and-press-releases/2021/december/termination-of-miran-and-bina-bawi-pscs/
Damofarl, Thordon,
It’s a pity that it had to end like this. I still can’t believe that this management sold 2P reserves worth in excess of 100 mln US$ together with ~2 TCF additional resources for effectively 45 mln US$. It’s an absolute scandal, no normal company would get away with that.
But WEN was never a normal company. The last few years was all about “pretending to be an operator” to mask the outrageous G&A costs; it was never really about building-up a company. I think they started off with the right intentions, but after some bad luck with the early wells it went downhill, especially after Eskil was sacked.
Having said all that, I am happy that it is over and overall I made a reasonable profit even. Problem now is that I’ll soon have to reinvest that sum again, so I’ll be looking for other opportunities. Not sure though if I will continue commenting here on LSE.
As a final comment: If you still have some WEN shares, I would hold on to them a bit longer. It’s still possible that another party may want to bid as well… you never know.
Good luck all!