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Took this little rise to sell another tranche of my shares, still have 50k shares which is about 40% of original holdings. I’ll probably keep these now to have some skin in the game and depending on restructure outcome may get back in.
Just have no idea how it will end but feel they’ve give us plenty of time to exit before a possible D4E, however do want holdings should they do a rights issue. GALTH
Don’t have full access to this article but googled Petrofac and it came up, so possible has something for them, if anyone has access be good to know what is says.
https://www.upstreamonline.com/field-development/adnoc-fires-starting-gun-on-strategic-offshore-gas-development/2-1-1628246
I wonder if the SG note mentioned here a while back of D4E of 22p has some legs to it. We seem to be hovering around there and I suspect shorts are closing.
Hopefully we don’t have to wait too much longer, it’s been dragging on long enough.
Below statement was in first paragraph of Strategic review statement from December 4th. I would have to say they've made a real hash of the key aim of the review; Shareholders seem to be the last people they care about. All senior management should be sacked.
"A key aim of this review is to protect the interests of Petrofac’s shareholders, creditors and employees while the Group continues its focus on safe and effective delivery for its clients."
PC,
You often put forward compelling arguments and although I don't agree I do take note of your posts. However I think you've hurt your credibility with the two points you've been raising since Friday's RNS.
1) That PFC had to make a RNS due to the FCA rules due to strong rises over previous 3 days and Media speculation. Firstly, there was no media speculation and are the FCA rules new as PFC certainly didn't care when SP was tanking since October last year and all we got was radio silence.
2) Shorts struggling with borrowing costs is laughable, as Habourside216 has already pointed out why would they close their positions when on the surface of it the RNS is giving them exactly what they want. Also the SP is only back to where it was 4 days prior to RNS, didn't see any of them closing then, so all of a sudden borrowing cost made them close on the day of RNS, if they did reduce on Friday, it would be due to them also suspecting a TO bid.
I don't know which way this will go but it certainly appears that the release of the RNS was done to suppress the share price, can't see any other reason, certainly not your FCA compliance line as it's never bothered them before.
Maxdba,
I think It does say something and that is that d4E is going to be their solution. I don’t like it as a LTH but that’s what we’re dealing with, now we’re left guessing the details of it, but it’s happening.
The board and major shareholders will be mindful that all shareholders had to cough up for the rights issue a couple of years ago, so reckon they are expecting this time the BH’s do their bit and free up some security to allow asset sales. That’s what the discussions with BH’s is about.
A share dilution at these levels is hardly worth it and would catastrophic.
Form what I read Metro Bank took a heavy dillution, maybe 3 new shares for every existing share, bond holders also took a hit.
While liquidity was a commonality with Petrofac, the situation at Metro Bank did seem a little more dire and urgent. Petrofac I believe are in a better position to negotiate. Time will tell.