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D4E means dilution
Major share holders investing along with new share holders means further dilution
Dilution means share price is expected to go down and is bau.
Every few days there are new rampers here. A few days ago there was omers. not seen him for a while.
I know nothing about shorts but just little bits. I dont think short means bet on share price only and not taking into account the number of shares in issue.
Otherwise all shorts will buy where ever there is dilution/rights issue on its way. just simple logic makes me think and could be reason for shorts to run away.
Not sure if they can wait for months. These performance guarantees are to be in place for company going forward. Also this is a tool that bod/management is using to hammer PIs.
Current holders at the end of a couple of spirals will only hold 20% of the company if lucky(58% as of now)
Debt will explain the story and If it is still going up no point keeping it.
That is the point . They have let it go down to get it cheap. Imagine if you invested as a debtholder and i invested as a shareholder a year ago. You are going to buy shares at below market rate even when share has fallen nearly 60-70%. and what will i have.
They could have issued rights at 70,60 etc .. They could have sold part of business . They could have done some belt tightening. They let it drown to get it cheap.
Please some one correct me if i am mistaken,
If D4e comes at a premium of 10p that makes per share at 13 p to a debt holder.
Now if new float is 525 million which is equal to current float. So some one will own half of the company in around 75 million .
Why didnt the board tried selling half of the company etc or put the whole bit on sale. I am sure that will generate much more then 20p a share.
Just non core assets are valued more than 300 millions.
It seems they want to rob everything from PIs . I have no faith in this BOD.
For all shareholders Please have a look and read what rampers have been telling whole day.
https://www.fitchratings.com/entity/petrofac-limited-91460297
Sale of non core assets (valued at 400+m) will be done when majority of equity(currently valued at 138.34) has been awarded. MCAP was going up with increasing share price and hence it was necessary to break the momentum with an unneeded RNS. As @ PaddiG mentioned for months the share price kept on dropping but these guys had their lips tight.
Well done to Schroders Plc who identified and jumped from the ship.
You have always been positive PFCVet.
The worse you can imagine, this management/board will take you there.
Entry of Aidan de Brunner is just to show transparency, so to stop finger pointing.
There is no takeover offer and company has been on 20-30p for sometime now. I think there will be no offer as game is understood at top level. Game is set to kill 58% of PI.
Actually we are lead into worst case as below
Berenberg placed the firm under review as a result, removing its rating and price target and warning that “in a worst-case scenario, Petrofac may be forced to renegotiate its financing agreements, potentially leaving shareholders significantly diluted
However, director research analyst for oil and gas at Panmure Gordon Ashley Kelty has said that this does not provide any new information for concerned stakeholders.
This doesn’t advance investors understanding of how close (or not) they are to getting a restructuring deal in place as they’ve been saying this for months.
we would not be surprised if the significant dilution that this would entail will set current holders running for the hills
In December, multiple market sources told Upstream that Petrofac aims to sell its upstream and pipelay vessel assets as part of a drive to raise some $450 million to help shore up its balance sheet.
These discussions are happening as per RNS. In my opinion Equity will be handed over first. Say 75% of company handed over to debt holders. then another RNS where non core assets sold for some $300-350 and get rid of rest of the debt.
However 75 percent of the company handed over to some one for nearly free.
Same here. I have no faith in this board and management. Last year suddenly they spotted that debt level have skied.
And now if a company cant do this much of work with its financial conditions why are they bidding for more and selling the company to get that work done???
I am seriously thinking that they deliberately are pushing the value down to sell the company cheap to some debt holders. Anyone knows who will be owning these debt holding companies. Are these same people or any different set of people.