|Ecofin Water&powr Opportunities
||EPS - Basic
||Market Cap (m)
|Equity Investment Instruments
Ecofin Water&powr Opportunities News
|praipus: Asmodeus are you ignoring the fractional entitlement if so why?
Each ECWO share entitles you to 22.4758p NAV of an EFR share. Therefore you need 4 ECWO shares to give you one EFR share.
Using your % factoring: If ECWO NAV at calculation date = 100%
Approx 85.77661% of ECWO NAV = 1 x EGL share
Approx 14.2239% of ECWO NAV = 1/4 of an EFR share|
|wskill: Good to see the lonestar share price increasing then when I looked at it last time it was around 4%.|
|ganthorpe: I have had a browse through the circular detailing the reconstruction plans.I have not done a really detailed analysis.
All comments are my interpretation only and DYOR if involved.
ECWO was due to be wound up or have a continuation vote as at 31 July 2016.
Hence this complex missive of a circular.
1) the £80M of Convertable Loan Stock will be repaid at par on 31 July 2016,THe conversion option expired on 31 May 2016. That's the easy bit.
2) the 60M Zero Div Pref shares (ZDPs) are entitled to be repaid at 160.7P cash on 31 July 2016. However ECWO are offering a rollover scheme whereby ZDP holders can opt to rollover their shares into the new vehicle planned to replace ECWO called ECOFIN Global. This would enable ZDP holders to avoid being liable to tax on the 60.7P gain on redemption immediately. The price of conversion has yet to be determined but it will need to be somewhere not too much above the share price to be attractive. It is in the interests of the Managers to get as many as possible to convert and continue to enjoy their commission , and possibly a larger Trust is beneficial to ongoing Ordinary shareholders .
3) Ordinary shareholders appear to be being offered
a) The opportunity to tender up to 35% of their shares to be repaid at a price to be determined which may be somewhere between the current share price (138P)and asset value (currently 167P).
b) Shares in a continuation of ECWO holding the remaining illiquid investments of ECWO which have not been sold , pending sale in the future. Hopefully not a lot.
c) Shares in a new trust called ECOFIN Global which appears to be a similar beast to ECWO investing in the same type of sectors.They seem to looking for an initial 4% yield. (i.e.Less than current).
All this will rumble it's way through the legal processes till September .
I hope that this is reasonably accurate but please don't rely on any part of it without cross checking.
As previuosly mentioned ECWO have already liquidated a substantial proportion of it's holdings so there seems to be plenty of cash to fund the exercise.
Will it help the ECWO share price any further? PASS!
Could reduce the discount?|
|wskill: Thanks Praipus this is what caught my eye,lonestar presently 4.1% of our portfolio so if it reaches the same valuation as its US peers it will be 24.6% or am I missing something.
And we have a 6% yield whilst waiting that is one thing I am good at waiting.
Despite this impairment charge, Lonestar’s share price is just
one‐third of its book value; the share prices of Lonestar’s US peers are typically twice their book values|
|ursus: With plunging nav and the obligation to repay Z's and CULS at end 7/16, might this become a share to be wound up? That decision has to be made in the next few months, I think, as the board must propose a continuation resolution. There is nominally headroom to repay the Z's and CULS from the existing bank facility, but that is a short term solution at best. So the bullet may well be bitten sooner rather than later.
Time to decide on an investment will be about the time of the continuation resolution, I reckon, when you can judge if a liquidation over say a 2-3 yr timespan cd pay out more than the share price predicts. Such investments have been v profitable in many areas over last few yrs, and with a reduced level of the anguish that many other shares are causing at the moment.|
|larmor: Could be, but the last monthly report (for October admittedly) said Lonestar's production costs were amongst the lowest with breakeven below $50 boe. however Lonestar's share price had dropped 13% over the same period.
I see the price has recovered a little....|
|wirralowl: Big fall in the share price this morning but not showing on advfn charts or midprice quote (but is showing in their trades section)? Can't see any news either to explain the fall, but trades definitely going through around the 157-161 level..?!|
|hpcg: Agreed to both shauney. Good margin of safety here and I think the share price may hang around the conversion price. If it does and the NAV continues to grow then I'll pick up more at a still tidy dividend knowing that will be a floor come what may. What makes this even more attractive is that unlike an open ended fund if former bond holders want to take their profit then can do so only at the cost of the share price, not the underlying assets. Whilst this is normally touted as an advantage for open ended funds as rush for redemption knocks the value of the companies being force sold. This what could have happened here with a cash payout at par to CULS holders but that looks very unlikely now.|
|jonwig: The share price seems to want to maintain a 20% discount to NAV.
Understandable, given the gearing, but energy stocks are the place to be.|
|jonwig: hpcg - thanks, I'd no problem reading your link.
The holdings figures in the article seem to be ECWO plus affiliates. As far as I read, ECWO itself holds 55.5% of Lonestar, which is 11.7% of its portfolio. (April factsheet.)
What surprises me a bit is that the share price discount to NAV here hasn't narrowed much relative to NAV performance. Investors are still fretting over gearing and restructuring?|
Ecofin Water&powr Opportunities share price data is direct from the London Stock Exchange