Fortune Oil Share Discussion Threads

[jezwatson] 08/2/2015 15:56

According to TD Direct Investing, the deadline for voting is tomorrow, 9th Feb at 6:59 pm!!!

[neptune_tad] 07/2/2015 16:58

Copied from Pete44 on Interactive Investor Forum

SIMON THOMPSON INVESTORS CHRONICLE THIS WEEK

Quote:-
The main attraction when I advised buying FTO shares was FTO's investment in China Gas. FTO owns197m shares outright & has beneficial interest in744m shares thro' a jt. venture in China Gas Group Ltd. Combined this means that FTO has an interest in 18.8% of China Gas equity.
CG currently has a market value of HK$60bn or £5.1bn at current exchange rates based in stock price of HK$11.96. This means that FTO's direct investment in the company is worth £200m and its 50% share of CG Group's stake is worth a further £379m. Combined that equates to £579m or more than double FTO's market value of £259m. The book value of the investment in CG is £402m in FTO accounts or 30% less than its current open market value.. Glaring valuation anomaly, a fact that a consortium owning almost 57% of FTO issued share capital is attempting to capitalise on by launching a cash bid of 10p a share for the company. FTO's shareholders are also being given a contingent value right ( CVR ) worth 5p a share to benefit from a material share in any value realised from FTO's valuable share holding in CG within 12 months after the completion of the takeover. The CVR is payable if at least 35% of FTO's holding in CG is sold for a price in excess of HK$ 11 per share.
If there was any certainty that a sell down of the CG stake would happen, then an exit price of 15p a share seems fair right now. However the minimum cash offer of 10p would be a bargain buy for the acquirer and having had a close look at the offer doc. I feel that an outright bid of 15p a share is more than reasonable, given that FTO's NAV is closer to 20p a share if the stake in CG is marked at market value ( SIT TIGHT )

[bam bam rubble] 06/2/2015 23:30

Sounds like a bid for CGH in the next year is the only way the CVR would pay out
(and needs to be a cash bid over HK$11 as an all-paper bid would count as nought)

[del44] 06/2/2015 20:55

Well this day next week we should know a little more as to the direction of FTO......If you are unsure...then selling in to the market may be the best decision...If you are holding then vote, one way or another....
If the board get the 75% they need, then we will get our 10p cash and move on. The cvr, in my view, looks highly unlikely (Page 15 note 4....."the Independent Fortune Oil Directors believe that a sale of some or all of the China Gas Holdings shares is unlikely.") So the offer is 10p cash in my view.

If they don't get the 75% needed, then we are in a different game and who knows where the share price will go.....so if you are nervous of this out come...then sell...The way in which the offer document is presented, allows for an offer only without the scheme, if the consortium so wish....but weather they will or not, is a gamble that may not be to many investor's liking...

I remember a few years back when Sinopec/ENN made their opportunistic HK$3.50 a share bid for CGH and refused to increase their bid in the face of a group of investors holding out against their terms......They lost face as well as the bid target by not increasing the bid......and what happened to the share price of CGH after the failed attempted bid?
They are currently sitting at HK$12.50 per share after a near 25% correction since late November 2014!!!

[del44] 06/2/2015 19:57

jacks13...Thanks for that...Will get a copy over the weekend...

[alanadale] 06/2/2015 17:27

This apparently is what many nominees have been sent by Capita, the Registrars, and it is seriously misleading. This vote refers exclusively to the CVR on the yellow form sent to registered (as opposed to nominee) shareholders for the General Meeting. However, there is a blue form relating to the Court Meeting which allows you to vote for or against the scheme.

Insist that you register your vote for the Court Meeting and make your nominees contact Capita to do so.[This has been edited]

[david2013] 06/2/2015 15:23

I have had a corporate action note from TD Waterhouse. The options are:
1 receive cash and contingent value right or loan note
2 Elect to receive cash and loan notes

I am not sure what the difference is. I have about 600,000 shares and don't feel that we are getting fair value.
can any one offer some advice on the difference between option 1 and 2 and how I can vote no to the proposed deal.
Thanks
David

[jacks13] 06/2/2015 12:45

Del, have a look at today's IC (Simon Thompson)

'..... However, the minimum cash offer of 10p would be a bargain buy for the acquirer and having a close look at the offer document I feel that an outright cash bid of 15p a share is more reasonable, given that Fortune's NAV is closer to 20p a share if the stake in China Gas is marked to market value. Sit tight.'

Well, that's the tail end of the piece.

[mutantpoodle] 06/2/2015 10:21

qq
those to whom a company is responsible (shareholders/creditors, taken as a whole)
uq

which must be based on a majority basis since claiming its in best interests of a minority of share holders would not make any sense at all

who is the majority shareholder(s) ??

??

[exel] 06/2/2015 10:15

Voting NO is voting for further considerable uncertainty, and NO immediate cash. Voting YES is voting to end all uncertainty, here, bring in 10p per share very soon (with no costs) and with a carried interest worth a possible further 5p (admittedly 'unlikely' but not completely impossible). I vote YES. There are oodles of other shares to re-invest in, 'out there', many of which may become much easier to acquire (and idc to sell at a profit) if present geo-political & military uncertainties persist, and potentially worsen! Example: What will the UK market do after the May'15 GE outcome, just 90 days off, assuming Ukraine is still boiling and ISIS remains undefeated, and causing mayhem? Many serious commentators have been warning of an 'equities melt-down' for the past few years. There were wobbles in Oct'14 (quickly corrected) but what if one of these shudder/corrections occurs and deepens (say post-May'15, to name but one local trigger point). Bargains would emerge. Who would want cash endlessly tied up here? or anywhere that could not be readily realised? ex

[t2] 06/2/2015 09:40

I must say having only a small holding of 90k left in these now, I am sorely tempted to bail out on these in the next few days the way the bid is ticking up.

I would like to think that all this voting against will do some good and maybe produce a better offer, but the other half of me is just saying bail out and move on !!

[bam bam rubble] 05/2/2015 20:31

There was some talk that a no vote may result in the BoD moving towards a delist
as premium listings need 75% support whereas standard listings have no threshold.

However, standard listings would still need to meet the ordinary FSA regulations.
In this case the protection from any move to delist is provided by section 5.2(7)

The FCA will not cancel a listing unless cancellation is in the best interest of
those to whom a company is responsible (shareholders/creditors, taken as a whole)Http://fshandbook.info/FS/html/handbook/LR/5/2

[del44] 05/2/2015 20:14

It's lucky in China....:-)

[johnives] 05/2/2015 20:12

Friday 13th sounds ominous

[del44] 05/2/2015 19:13

Votes by proxy to be in by 14:00 hrs this coming Wednesday the 11th.
Then next Friday the 13th, is the scheme court vote.....
Better then the Euro vision song contest....

[del44] 05/2/2015 17:07

Rather strange to see the offer been taken towards the end of trading...
While the share price is showing an increase of over 2.25% for the day, in reality, it is still unchanged on the bid @ 9.76p (slight increase on yest 9.72p)For the volume of trading at these prices today, I cant see why you would be paying that price for 10p in a month's time....

[del44] 05/2/2015 12:28

Posted on iii today...the following....""Bad Request (Invalid Hostname)" It seems you can't! By pete011111
You can I voted already online....

[del44] 04/2/2015 17:08

Nikko Asset Management Asia Ltd.
as of 05 Jan 2015

Bank of Singapore Ltd.
as of 05 Jan 2015

Talos Securities Ltd.
as of 05 Jan 2015

Premier Fund Managers Ltd.
as of 18 Dec 2014

FIL Investments International
as of 01 Jan 2015

TD Direct Investing (Europe) Ltd.
as of 05 Jan 2015

FIL Investment Management (Hong Kong) Ltd.
as of 28 Nov 2014

These are the ones with a registered holding at the dates above but there may be more below the 1% holding...

[neptune_tad] 04/2/2015 16:43

Alan, not sure if this link is any help but the only indication I know of



Keep up the good work and thanks for what you have done for us PI'S

Email [e-mail] with your name and holding (big or small) to see the action Alan is taking.

[jacks13] 04/2/2015 16:43

alan, try Scott Harris (Investor Relations), he may be able to tell you or try the Company's registrar.

[alanadale] 04/2/2015 16:30

Does anyone know who the institutional investors are and how to get hold of them ?

[allend47] 04/2/2015 15:39

thank you Del44, I will try through corporate actions

[txi] 04/2/2015 15:24

I have just telephoned HL with my No vote request and have not had a problem.
I am awaiting confirmation of the action.
By the way good work Alan. Let me know if I can do anything. With a bit of luck I might be able to attend the meeting next week

[del44] 04/2/2015 14:50

allend47:
I dont use Barclay...however others do, and have not had an issue...try phoning them direct or else.... contacted them via secure message in corporate actions section and give a No vote instruction , they should reply within 24hrs confirming that they have registered your vote at the upcoming meeting.
Good luck...