Member Info for optimist13

MM's up to their tricks again. Noticed the price had dropped this morning on zero trades, so I have managed to buy 300,000 at 0.68p, which is showing as a sell of course. With the possibility of a trading update in the next few weeks, as the year end is October, I am expecting to hear some positive news.

I see the administration period has been extended by a further year until the 17/10/18. https://beta.companieshouse.gov.uk/company/01761400/filing-history Now, where is the statement from Rurelec on this continuing fiasco.

Well, well, well....they have now gone long. Very interesting indeed. https://investegate.co.uk/w-h--ireland-limited/rns/form-8-5--ept-non-ri-/201711070917507724V/

There are some day traders losing a lot of money here and the MM's are loving it. As far as I am concerned, Rurelec is now in play, and the value of the assets far exceeds the current share price.

GFD - good to hear from you. Whether PE planned it or not, there is no hiding now and the Rurelec fiasco is now being viewed by a much wider audience. I am just pleased that the two largest shareholders who have previously funded the company at a much larger share price do not look like they are going to roll over and let PE take the company on the cheap. The shareholder destruction has been quite staggering here and even at 7.00p, it is still a far cry from amount that many LTH's have paid for shares in the company.

As posters are saying, this is far from over. Extract from today's RNS: "This announcement, and the restrictions referred to in Rule 2.8 of the Code resulting from this announcement, do not apply to Mr Peter Earl."

It is quite obvious that the company is grossly undervalued if you only use the discount to NAV. However, the market appears to have no faith in the current directors or their ability to maximise the value of the assets. Following the destruction of shareholder value by past directors, who IMHO are still exerting influence, the business should be put up for sale. Given the value of the assets and the fact that Rurelec hold a first charge over the assets of Energia del Sur, I cannot believe an offer would not be forthcoming at a significant premium to where the share price is languishing at the moment. We will find out on Wednesday, at the latest, whether Peter Earl has any backers, but if not, I cannot see how the company can continue as an independent power producer.

Note the wording,' may or may not'

Rurelec notes the recent rise in the share price of the Company and confirms that it is in the early stages of discussions with a consortium led by Peter Earl (former Chief Executive Officer of Rurelec), which may or may not be funded by IEH Limited, a company connected to Rurelec's joint venture partner in Patagonia Energy Limited (the "Consortium") regarding a possible offer for the entire issued and to be issued share capital of Rurelec.

Not yet. the company will have to release a statement. PE may still be tabling an offer.

Moving up now, but still nowhere near a fair value for the company in my opinion. With only one MM on the offer now, we should see further increases in the share price today. Add back the impairments for EdS and the NAV should be in the region of 7.00p. And that ignores the impairments to the other assets for the turbines, etc.

If PE gets the company on the cheap, it should definitely be investigated. 11 March 2011 RURELEC PLC ("Rurelec" or "the Company") Issue of 200,000,000 Ordinary Shares at 9 pence per share by way of Placing, Subscription and Capitalisation Authority to issue up to 15,500,000 Ordinary Shares at 9 pence per share pursuant to the Sterling Option Approval of waiver of obligations under Rule 9 of the Takeover Code Notice of General Meeting (the "Proposals") Rurelec, the AIM quoted independent power plant developer with operations in South America, is pleased to announce that it has today sent a Circular (the "Circular") to Shareholders seeking their approval for the issue of 200,000,000 Ordinary Shares at 9 pence per share by way of Placing, Subscription and Capitalisation, raising approximately �16.3 million before expenses and capitalising �1.7 million of Company indebtedness. The proceeds of the issue will be used for the acquisition of senior secured debt due from Energia del Sur S.A., (50% owned by Rurelec), the repayment of Unsecured Indebtedness and Loan Notes, for working capital and for settlement of outstanding trade creditors. The issue has been supported by certain major shareholders, including Sterling Trust Limited. Sterling Trust Limited's participation in the issue and its ability to exercise an option over up to 15,500,000 Ordinary Shares is subject to the approval of the Company's other shareholders, as its interest in Rurelec will rise to over 50 per cent. of the enlarged share capital of Rurelec. Accordingly, the Panel on Takeovers has been consulted and has approved the waiver of obligations under Rule 9 of the Takeover code as set out below in paragraph 8. The Rule 9 waiver and the increase in share capital are both subject to shareholder approval which will be sought at the General Meeting to be held at the offices of the Company at 5th Floor, Prince Consort House, 27-29 Albert Embankment, London SE1 7TJ on 28 March 2011 at 10.00 a.m. Commenting on the placing, Peter Earl, CEO of Rurelec said: "We are delighted that Sterling Trust and other significant shareholders are showing their continued support of Rurelec. The fundraising will place the Company on a more conservative financial footing by eliminating debt. It will strengthen our balance sheet, whilst providing us with greater certainty over the future of the Company whilst we seek to negotiate a settlement with the Government of Bolivia. The acquisition of the senior debt of Energia del Sur will allow us the freedom to restructure the debt of Energia del Sur and accelerate payment of interest and principal on all funds Rurelec has lent to finance the successful implementation of the combined cycle conversion project."

And this is just one of the assets: HOME Energ�a del Sur S.A. (EDS) is one of the largest thermoelectric generating plants in the Argentinean Patagonia It`s Combined Cycle has an installed capacity of 138 Mw that supplies diverse sectors of society and the power industry with sufficient quality and quantity to contribute to the development of the population as a whole. EDS has carried out a sustainted expansi�n plan since 2004 with a total of U$S 55 million invested. The last leg of the plan addition was the installation of a 60 Mw steam turbine and two heat recovery generators incrementing EDS`s installed capacity by 77%. This addition permitted EDS to become the world�s first combined cycle to successfully complete registration in the United Nations Framework for the Clean Development Mechanism defined in the Kyoto Protocol.

I see W H Ireland have finally closed their short. I still cannot see how it was within the AIM rules for them to represent the company and at the same time hold a short position. http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/other/13421201.html

Brightonscot - well spotted. Very interesting that they chose to submit the notice so that it cannot be viewed until after PE and his consortium declare their intent. Could just be coincidence, but I don't think so. https://beta.companieshouse.gov.uk/company/01761400/filing-history

It certainly doesn't take much buying to move the share price up quickly. Next week could be very interesting. Have a good weekend all.

Or lack of. Is this the lull before the storm. Given the knowledge that PE and his consortium have about the business, I feel pretty sure there will be an offer tabled. The big question is how much of a premium they will offer to the current share price given the current large discount to the NAV. If you then add back in the impairments, the discount becomes a much larger figure. You never know, they might table the offer before next Wednesday's deadline.

Oops....I meant the 3,571,429 trade.

Other than a previous poster who was told by the company that it would take approx 3 months for due diligence, no further news that I am aware of. Given that the announcement was made on the 8 September, we should be hearing something next month if they are keeping to timescales.

Anyone have a clue as to the 3.2m trade that keeps re-appearing. It clearly doesn't affect the share price.