Coastal Eng Share Discussion Threads

[davr0s] 21/11/2013 09:12

Still holding - my take is a second bid more likely than the current bidder pulling out by Christmas, and in absence of either the price ain't going anywhere. This gives more than enough time for a second bidder to declare their interest if there is one - I am sure some will have thought about this. If nothing happens by then I'll sell as not clear what happens if I hit the deadline date ie don't want to risk getting a load of Canadian or even US dollars

[rivaldo] 21/11/2013 07:02

I think IAE (Ithaca) is worth looking at as another dual-traded stock in the UK and Canada.

Anyway, thx also from me to the likes of Oiljack et al on IV and dukedosh, TGG and others here for the ride - only a 4-bagger for me!

Here's an interesting article about the takeover - differing opinions, but a majority saying a competing bid is unlikely:

[royaloak] 20/11/2013 15:26

If any of you trade Canadian stocks have a look at 'E', Enterprise, had an excellent run but still looks good value to me.

[gargoyle2] 20/11/2013 03:15

I'll add my thanks tooo, dukedosh. Much appreciated. I only came out of this about even stevens, but a lot learned on the way. hhhh

[dukedosh] 19/11/2013 19:58

You're welcome chaps. It's been a pleasure. The very best of luck to you too. Let's raise a glass to finding the next 6 bagger.

[melf] 19/11/2013 17:12

Dukedosh, many thanks for keeping us updated on CEO over past few years.....very much appreciated and good luck in the future.

[dragonsteeth] 19/11/2013 16:10

Well that's me out and moving on . Been here a while, not posted much but very grateful to dukedosh and the many well informed investors here like tgg etc. I still have Mrs DTs ISA shares to sell , so may hold those for a wee while or until I pluck up courage to tell her that "Coastal Energy " wasn't really into making energy from windmills on the coast , but you've made a nice profit ;-). Good luck all with where ever your CEO money lands.

[nermil] 19/11/2013 14:28

Can someone tell me how this works? So if they don't get a 2nd offer and if $19 is the final price, but we're right now trading at slightly below this, what happens to those who don't sell out before the whole thing is completed, ie stick through to the end. Do we get a cash amount of $19 per share with CEO no longer listed? The only other time I was involved through to the end with a bid, I got equivalent shares in the buyer. But this is not that same sort of deal. What are the mechanics of things where its purely a cash deal? Happy to no longer be thousands down on this however, I was half expecting more bad news today re permits only to get something positive even if not the $25 everyone hoped for.

[davr0s] 19/11/2013 12:25

So who keeps buying 100k shares at a go? Our bidder picking them up a bit cheaper than their bid price?

[briggs1209] 19/11/2013 11:16

This was my biggest position and has done very well over three years (even if not great over last one). The cash will not be going to oil and gas though as in general I don't pick too many winners in the sector.

[dukedosh] 19/11/2013 10:07

SMDR? They have a very poor exploration record of late. Indonesia has been a grave yard for their cash so far. Look at their debt, it's huge. Big question is are SMDR self financing in the long term? IMO the investment case is not so compelling once you take away the M&A speculation and hype.

[polyps] 19/11/2013 10:03

I would look at MPI, undervalued by 30%. Massive cash reserve, producing just under 10,000 net bopd. Owns 35% of Seplat which is planning to list in London this year.
High risk but high reward and as listed in Paris very undervalued.
My target is 4.40 Euros
Currently at 3.20 Euros.

This is a cash machine.

[loglorry1] 19/11/2013 09:57

Mark would you consider recycling proceeds into SMDR? I have a big holding here and not sure if to spin the wheel again or take the money and run! O&G been a difficult sector this year.

Log

[marben100] 19/11/2013 09:50

Hi Riv, Duke,

My guess is that the drilling programme (and Thai permitting) have not turned out as management had hoped 6 months ago. In the light of that, management have accepted the lower offer. Personally, I have been disappointed by (lack of) production growth and am happy for management to have, effectively, taken the decision to sell for me.

Sold early doors @ 1109p -would rather make a clean & certain exit with a very healthy profit than speculate on possible further gains vs something crawling out of the woodwork (admittedly unlikely).

Cheers,

Mark
PS I strongly suspect Wyatt played a key role in this decision, probably thinking along the lines I suggest above.

[polyps] 19/11/2013 09:44

Take the offer and run, if ti falls through you'll be sorry. The major shareholder is happy to sell at this price and he knows the value better than anyone else.

Now where to invest the money?

[davr0s] 19/11/2013 09:33

I think management has got damaged over the last 12-18months anyway. So they either don't believe the catalysts will drive the price up or this is their way of formally opening the "for sale" sign". Is it in a worse position than when it rejected the higher offer from last year? But agree its a bit creative even rich to be talking about share holder premium as we were at this share price 2 weeks ago! I shall hold short term and may even add a little more but either way the end game is clear now.

[dwyncoll] 19/11/2013 09:24

It's about the same as the mean share price over the last 2 years - where's the 'premium' in that?

[d40eq6] 19/11/2013 09:21

Looking after shareholder value? Hmmm.

[flamingo93] 19/11/2013 08:50

Clearly a disappointment if it goes through based on recent takeover rumours and a share price that got around the 1400 mark at the height of exploration success last year. The 28% premium line in the rns is particuarly unappealing. I do not hold much hope of a counter offer but no reason to sell up just yet. best of luck to all.

[dukedosh] 19/11/2013 08:49

It is strange indeed they have accepted $19 after turning away $23 last year, but the door is still open for improved offer. This story isn't quite over just yet.

[davr0s] 19/11/2013 08:25

So refined my numbers. offer price is 11.31 gbp - and board has recommended offer accepted and left that door open to new offers (as they are duty bound to do). The decision will be subject to a small number of big shareholders so they will have already backed this offer subject to formalities. I can currently buy at 11.13. Don't understand why people would sell now?Oh and I see they have just put out an RNS - so these guys had the layin this morning!

[dragonsteeth] 19/11/2013 08:17

this is the wthe IV stuff posted earlier (polite request : if you post a link can you go back and edit the http bit so all can see it, very difficult to read on phones otherwise.)
CEPSA to Acquire Coastal Energy Company for C$19.00 Per Share
Delivers Significant and Immediate Value to Coastal Energy Shareholders

HOUSTON, Nov. 19, 2013 (GLOBE NEWSWIRE) -- Coastal Energy Company ("Coastal" or the "Company") (TSX:CEN) (AIM:CEO) announced today that it has entered into a definitive merger agreement providing for the acquisition by Compañia Española de Petroleos, S.A.U. ("CEPSA") of all of the issued and outstanding shares of Coastal at a price of C$19.00 per common share in cash. The purchase price represents a premium of 28% to the closing price of the Company's common shares on the TSX onNovember 18, 2013. The purchaser is a newly-incorporated CEPSA controlled entity in which Strategic Resources (Global) Limited ("SRG") is an investor. The proposed transaction has an aggregate value of approximately C$2.3 billion including the assumption of C$51 million of net debt. The transaction, which will be completed by way of statutory merger, is expected to close in the first quarter of 2014.

Commenting on the acquisition, Randy Bartley, CEO of Coastal said, "This transaction delivers significant and immediate value to our shareholders. Our Board of Directors is unanimous in its view that this transaction is in the best interests of Coastal Energy Company and recommends shareholders vote in favor of this transaction."

CEPSA Chief Executive Officer Pedro Miro commented, "Today's announcement reflects an important step in increasing CEPSA's E&P capabilities. Coastal's business comprises a high-quality portfolio of upstream assets located in Southeast Asia, operated by talented management and dedicated employees. We believe that Coastal provides a tremendous foundation for furthering our E&P strategy."

Jho Low, spokesperson for SRG added, "We are excited to invest with CEPSA in Coastal. With our strong relationships in Asia and CEPSA's strength in the E&P, we believe we can grow Coastal's footprint in Asia and further enhance the Company's operations."

The transaction will be funded by CEPSA's and SRG's available financial resources.

Recommendation of the Coastal Energy Company Board of Directors

The Board of Directors of the Company, after consulting with its financial and legal advisors, has unanimously determined that the transaction is in the best interest of the company and that the consideration being offered to the Company's shareholders is fair from a financial point of view. The Board of Directors has resolved to unanimously recommend that the Company's common shareholders vote their shares in favor of the merger at a meeting of shareholders to consider the transaction which is expected to occur in early January 2014.

Additional Information on the Transaction

The definitive merger agreement provides for, among other things, a non-solicitation covenant on the part of Coastal, subject to customary "fiduciary out" provisions, that entitles Coastal to consider and accept a superior proposal and a right in favor of the purchaser to match any superior proposal. If the definitive merger agreement is terminated in certain circumstances, including if Coastal enters into an agreement with respect to a superior proposal or if the Board of Directors of Coastal withdraws or modifies its recommendation with respect to the proposed transaction, the purchaser is entitled to a termination payment of US$76,000,000.

Completion of the transaction is subject to customary closing conditions, including approval of two-thirds of the votes cast by holders of common shares in person or by proxy at the meeting of shareholders and by a majority of disinterested shareholders in accordance with applicable securities laws, and receipt of applicable government and other approvals. The transaction is not subject to any financing condition.

Coastal shareholders will be asked to vote on the transaction at a special meeting of the Company's shareholders, expected to be held in early January 2014. Full details of the transaction will be included in the Company's information circular to be mailed to holders of Coastal shares in accordance with applicable securities law. A copy of the merger agreement, the information circular and related documents will be filed with Canadian securities regulators and will be available at www.sedar.com.

Certain directors, senior officers and other shareholders of Coastal, representing approximately 36.5 million of the Company's issued and outstanding common shares, have entered into voting support agreements with the purchaser and have agreed to vote their shares in favor of the transaction, subject to the terms and conditions of such agreements.

Credit Suisse Securities (USA) LLC has issued an opinion that the consideration to be received by the shareholders of Coastal in the transaction is fair to such shareholders from a financial point of view.

Coastal's financial advisors are Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC. Coastal's legal advisors are Stikeman Elliott LLP, Cleary Gottlieb Steen & Hamilton LLP, and Walkers. Goldman Sachs International acted as financial advisor to CEPSA. PriceWaterhouseCoopers acted as a financial advisor to CEPSA and SRG. Freshfields Bruckhaus Deringer acted as legal advisor to CEPSA. Blake, Cassels & Graydon LLP, Baker & McKenzie International and Conyers Dill & Pearman, LLP acted as legal advisors to CEPSA and SRG.

[ricky46] 19/11/2013 08:16

Thank god, really bored of all the stories, the retail investor got mugged here bigtime!!!!!!!!! On to bigger and better things

[davr0s] 19/11/2013 08:09

In terms of risk reward I would have thought buying at current price is not a bad trade having done a quick back of he envelope calculation. Spread is 1105-1125 and the offer according to my currency conversion is 1140. The downside is very limited in the next two months and should a second bidder be flushed out this could easily go up another 10-20%. So where is the flaw in my thinking - as no one buying this morning!

[ed 123] 19/11/2013 08:09

I wonder if there will be another offer?

From the rns,

The definitive merger agreement provides for, among other things, a non-solicitation covenant on the part of Coastal, subject to customary "fiduciary out" provisions, that entitles Coastal to consider and accept a superior proposal and a right in favor of the purchaser to match any superior proposal.

Still holding mine ..... for now.