The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Https://www.telegraph.co.uk/business/2024/03/27/israeli-owned-ithaca-energy-north-sea-oil/
They mention dividends in the Prospectus, page 14....3.1.6 Dividend Policy
https://ithacaenergy-files.fra1.cdn.digitaloceanspaces.com/Documents/IPO-b2f4d6/Ithaca%20Energy%20plc%20-%20Final%20Prospectus.pdf
Although with final results on 27th it may be completely clarified
Stu
Does anyone else have the feeling that we may have a repeat of yesterday, that is, when America awoke the share price rocketed?
Microsoft have the NYSE price at $12.91 = £10.16, please see attachment
https://www.msn.com/en-gb/money/stockdetails/fi-bn74ww?ocid=ansmsnmoney11
Does anyone know if USA has an account similar to an ISA? Imagine receiving this huge dividend without the Withholding Tax, but I'm not sure how dividend payments are treated over there by the IRS...??
Stu
Agreed Davidspellacy, an individual share cannot qualify for the dividend AND be sold in the Tender, its either one or the other - however a shareholder can decide to split their holding of multiple shares between the dividend and Tender offer options (although DEC may not necessarily accept all the shares tendered for sale)
The Tender Offer is actually a clever move from DEC, they were set to return 'approximately US$42m' in dividend payments, but now that figure is split between dividend and Tender payments - the company returns the same amount it would have done, but now is set to buy back shares at the same time at no extra expense - it will suit some shareholders to take part in the Tender and the remaining shareholders may feel the benefit of fewer shares in circulation, as the share price, in theory, should rise.
If the outcome is seen as a success by DEC, why would they not conduct a Tender more frequently - they would be buying back shares at no extra cost at all?
Stu
Reading with interest people's thoughts that buy backs have had no effect on share price - we can't know this for certain because we don't know what the share price would have been without DEC conducting buy backs...
The share price has taken a hit due to many factors -
NYSE listing requires a minimum $1 share price, so before listing there, a 1 for 20 consolidation took place to ensure DEC will never be in danger of breaching that minimum - almost always after a consolidation share prices fall in real terms, this was the case with DEC.
The falling Natural Gas spot price has undoubtedly contributed too, despite DECs hedging policy prospective investors take things at face value and may be avoiding DEC for now.
Congressional 'meddling' doubting DECs ESG credentials, with little or no evidence to back claims made.
Snowflake shorting activities and questionable claims.
Even long term holders are posting here that the dividend will be cut from the current 87.5c demonstrates uncertainty, the market doesn't like uncertainty.
The Tender Offer is unclear to some as a concrete figure has not yet been provided.
Personally I think that the picture will become much clearer after the FY2023 results on March 19th and then we may have a more realistic share price thereafter. In conclusion, have buy backs been beneficial to the share price... maybe not yet, but they will be.
Stu
I found this article very interesting, hopefully DEC are proven ESG competent...
This might lead to business for Next LVL Energy?
https://www.businessinsider.com/google-map-methane-leaks-world-can-see-2024-2?_gl=1*16ghy18*_ga*MjAwNDUxNTY2NS4xNzA4NDczNTI5*_ga_E21CV80ZCZ*MTcwODQ5NzEyMy4yLjEuMTcwODQ5NzE3OS40LjAuMA..&r=US&IR=T
Stu
Hi LOTM-13
Just to clarify, I am not dismissing the Tender Offer completely - just saying its not for me, most of my holding is in a SIPP, so ignoring the Withholding Tax at the current level of dividend returns I am set to receive 27.6% annually, why would I muck about with that?
However, a quick glance at DECs 5 year share price chart points to the fact that for the majority of time it has been between 2000p and 2500p, so an average of 2250p would yield 12% annually or 3% quarterly, making the Tender something to think about, since it promises a 5% premium instead
Hi LOTM-13
As a generalisation when a company conducts transactions in its own shares, with the intention of cancelling those shares, it is viewed as similar to receiving a dividend to the shareholders - the diminishing number of shares in circulation should push the share price higher....whether through a Tender Offer or a Buy Back programme, the effect is surely much the same? Therefore, I think that my holding should increase in value.
To my knowledge, DEC have never intimated that the current dividend level will be cut, so why do you think that will be the case if holders do not participate in the Tender Offer? DEC must have a cash figure in mind to use for the Tender Offer, surely if less partake than they would hope, the remainder of that amount could be used for Buy Backs and the effect would be much the same.
Again, my plan is to hold DEC and compound my holding, using dividends to buy more.
Looking forward to the FY results
Does LOTM mean Lord Of The Manor, just curious?
Stu
I just plan to hold - if the Tender Offer is intended to raise the Share Price by reducing the number of shares available, then my holding will increase in value surely?
Mucking about hoping the SP, in the short term, hits an agreeable number to partake in the tender isn't for me - I feel DEC are a winner medium/long term anyway
Having recently proudly listed on NYSE and hoping for American institutional shareholder involvement, I highly doubt DEC will cut the dividend - in general, to counteract the shorters DEC is giving an impression of strength, a dividend cut would be regarded as a sign of weakness. Just imho.
I don't think many are checking in here Gordon, most have probably mentally written off their money.
I too was hoping a fellow HL investor would confirm they had also received the Safestyle message and give a rough idea as to any distribution - possibly we will know where we stand by the end of the month?
The message was from HL (Hargreaves Lansdowne) and not Safestyle Gordon, so you may not receive anything through Halifax...I have copied and pasted the message, as providing a link may compromise my account - I can assure you that what I post below is a genuine HL message received this morning -
Safestyle UK plc - Voluntary Liquidation
Reference: ********
Dear Mr ******
Safestyle UK plc – Voluntary Liquidation
Your holding of ****** shares within your Stocks & Shares ISA
What is happening?
The board of Safestyle UK plc has announced details of a proposal to liquidate the company and return cash to shareholders. The company will appoint a liquidator subject to shareholder approval at an extraordinary general meeting (EGM) to be held on 10 January 2024.
How to find out more and vote
You can vote on whether the liquidation goes ahead online. If you’re already logged in to your account simply click here and select the ‘give instruction’ link next to the relevant shareholder meeting.
If you’re not currently logged in, you’ll need to follow the steps below first:
Log in online at hl.co.uk
Select ‘view shareholder meetings’ which you’ll find under the link to your secure messages
Click the ‘give instruction’ link next to the relevant shareholder meeting(s) and follow the instructions.
You’ll need to do this before 7pm on Thursday 4 January 2024 so your vote can be passed onto the company before the shareholder meetings. If you’ve recently bought shares, it will take 2-3 days for you to be able to vote on these.
We’re not able to accept instructions through the HL app.
How much will I receive from the liquidation and when will this be paid?
The company is expected to have sufficient cash resources to make distributions. The date for these has not yet been announced. We will contact you again once we have received confirmation.
Other information and warnings
Should you have any queries relating to the liquidation please contact us. Please note, we can provide factual assistance but cannot provide advice about which option you should choose.
Yours sincerely
Mya-Leigh Sim-Jones
Corporate Actions
So still many unknowns, but I doubt they would have sent the message without a degree of certainty in what they were communicating...
Hope this has been helpful
Stu
Yes, it would be guesswork (certainly on my part) to suggest a figure to be returned....if they were to return say £1m divided by 138.87m shares, that would come to 0.72p per share.
To be honest I did not invest hugely and had pretty much written this off completely, so anything would be a pleasant surprise
Stu
I have just received a message regarding the liquidation of Safestyle, I recommend you check your inbox...
I found this paragraph most interesting, HL wrote -
How much will I receive from the liquidation and when will this be paid?
The company is expected to have sufficient cash resources to make distributions. The date for these has not yet been announced. We will contact you again once we have received confirmation.
So shareholders are set to receive a 'distribution', does anyone have any educated guess as to the amount?
Stu