Member Info for pc1001g

I suspect that the communication between the company and the IIs is significantly different to that with PIs. A few months ago, Standard Life increased their holding from 5.70 to 8.32%. There is very little in Save’s RNS releases over the past year or so that would support an uplift in investment.

I appreciate that IIs have a longer term view. They sell for varied reasons (thresholds, rebalancing, etc,) but the investment rationale is usually underpinned with some rigour. (Don’t mention Woodford)!

Some fantastic information on this board. Thank you.

Thanks to Mr B for posting this news link:

https://www.thenewsnigeria.com.ng/2021/01/21/restructuring-minority-shareholder-battles-seven-energy-international-company-13-others/

While the impact of the court case itself feels marginal, if not immaterial, some of the reported information in the Saltire Investments law suit is intriguing. The article referenced the transfer of all “the primary assets and cash generating businesses of the company to Savanna Energy and African Infrastructure Investment managers.”

It proceeds:
“Seven Energy International Limited owns $2,400,000,000 in assets, 2Trillion Cubic Feet of gross gas, 80,000 barrels of oil equivalent per day production and supplies to over 20 Million Nigerians with reliable gas.”

The scale and potential of these assets is absolutely enormous. Andrew has delivered a ferocious cash generating monster to shareholders, yet our capitalisation remains around £137m! When this share finally secures it’s deserved rerating, the share price will be many multiples of where we are today.

I’m attaching little weight to the pending court case. Recently, Standard Life increased their holding to 8.32%. DD would have been undertaken. The CEO share purchases offers further confidence.

I thought I had more than enough Save shares, but have spent the morning buying more. If Saltire believed in their Severn investment, they should also back up the truck.

Save are generating enormous amounts of cash. All things considered, it seems reasonable to assume, that should Save lose the case, (yet to be litigated), $14,740,123.94 will not pose a material threat to the company.

I suspect that Standard Life would not have increased their holding to 8.32%, just to see their investment go down the pan. Nor would Finncap wish to discredit their firm’s reputation with the very recent analysis that SAVE is a “cash machine.” Then there is the World Bank guarantee on payments, director buying...
The lack of movement on the share price is wearing, but the above suggests that there is every reason to hold.

At the risk of being accused of reading tea leaves, I can’t help being intrigued by the timing of the Finn Cap report. Why now? SAVE commissioned this report. There are a number of similar recent reports. Why another - why now? I read comments such as management being “tenacious” as offering timely reassurance to investors.
It feels that this report is warming the market to imminent news, hence me further increasing my holding.

Agree with your comments Trek. Numis are a heavy weight broker, amongst the top ten in securing new funds. It is a strategic loss.

We are not alone - Vivo Energy, (basically
Shell in Africa), appointed Numis as their broker in January 2020. There must have been a few raised eyebrows there with the Numis announcement!

Today’s RNS is factual, if basic. I like the fact that AK is bullish about the company, there are repeated comments about how hard he works, we have superb assets, etc, but we need confidence building PR.

The next announcement is the one that counts. Hopefully, AK is saving all of his finesse for that.