Fortune Oil Share Discussion Threads

[del44] 05/3/2015 11:45

via con:
Very good article and actually makes more sense reading that now, as to what was meant in court yesterday!!!

On reflection, I am getting 10p per share and like West Brom losing to a very late penalty against the Villa the other night, I am slowly getting over it...:-(
I don't like it, but am getting over it...

I, like ex, will keep an eye on CGH, just to see if anything should develop there.... Hard to try and second guess what may happen over there in Asia...but I shall follow it, just in case...

In the mean time, I await the cheque.....and am looking at my next investment..

[via con] 05/3/2015 10:53

FWIW

From the iii post

"Fortune Oil representatives referred to the CVR as an "embarrassment clause" , which led to a few sharp intakes of breath." It would seem that wasn´t true , it was used an ANTI embarrassment clause, judging by my links below


Anti-embarrassment clause: share purchase agreement

An on-sale or anti-embarrassment clause for use in a share purchase agreement where the seller requires the purchase price to be recalculated and subject to an upwards adjustment in the event that the buyer sells on, at a higher price, the sale shares (or other assets) within a specified period following completion of the original transaction.


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Here´s a case study


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I always thought the CVR for just one year was very little time. In land circles overage, which is the land equivalent of a CVR is usually in place for a duration of years not just one year, as it would be easy to wait for the year to pass and then sell the land without sharing out any increase in value

Any thoughts on this anyone ?

[wyfor] 05/3/2015 10:46

Certainly puts a different slant on things.

[via con] 05/3/2015 10:36

Excellent posts all.

So it would seem the CVR isn´t for us at all, its real purpose was to allow its safe passage through the courts´ process, knowing that 10p alone might not pass muster.

They´re very clever these Chinese, or maybe devious rather than clever is the word I should really employ

[ken536] 05/3/2015 09:50

The Chui name will go down in history as a person bringing disgrace
to the Chinese nation for being the most greedy, unscrupulous and
5 penny pinching person in the world, even worse than our bankers.
And not a Country to do honest business with.
Unless! He does come up with the 5p CVR
But thieves don't give anything back.
So Bye Bye CVR

[tel5] 04/3/2015 22:18

They have got what they wanted Danny boy has screwed us big time but no different I suppose to the bankers who destroyed shareholder value and filched off the massive bonuses for themselves.

[exel] 04/3/2015 21:35

wyfor - thanks for your post, being the 17700th in this series! Says something! For the record, we all 'stumped up', loads - and we all feel a tad 'hard done by' at just 10p. That said, the deal on the table is 'the deal' on the table. I elected to take it, learn the lessons, and move on. Would I invest in 'China' again? The jury remains out on 'that one'. If the CVR pays out, here, the answer may be a 'yes'. If not? ex

[wyfor] 04/3/2015 20:08

Thanks all for your valued contributions, you know who you are.
Much more knowledgable than me, I only stumped up the dosh to FTO.

Happy retirement Messsrs Chui, sleep well.

The shows not over till the fat lady sings.

Wyfor

[exel] 04/3/2015 19:55

Thanks Del, I do sense that this E comment derives from the fact that the 'independent directors' would have been 'very embarrassed' had the (what is now to be the FD) stake in CGH been sold on 'in short order' - post this (now) agreed scheme of arrangement. I don't sense that 'anyone' foresees 'such a sale' happening, today or indeed anytime soon, there are far too many complexities, - but 'they' (the independents) have rightly & understandably 'insisted' on the insertion of such a clause (being the CVR at 5p, et al) 'just in case' such a sale were to occur. As an optimist, I have to feel that there is 'a chance', but I would put it at no more that a 10% probability (if that!) or 9 to 1 odds against (at best). For my funds, in aggregate, this CVR (if it were to occur) would be a very material number, so I'll be 'keeping in touch' with the company and 'watching developments' closely. Good luck Del, and to all such holders!
All the very best, ex

[del44] 04/3/2015 19:35

"embarrassment clause"...perhaps, aptly sums it up....:-)
Enjoyed reading your posts ex...
Take care and all the best...

[exel] 04/3/2015 19:01

Thanks for your various posts, Del. Very interesting and much appreciated. I do sense that the 'rest of this process' is now a matter of form and uncontentious formality. If so, we should be closed out later this month as to the 10p and can then track developments, over the forthcoming 12 months, as to the 5p CVR (however unlikely, never impossible). ex

[del44] 04/3/2015 17:53

Court sanctions scheme of arrangement

Fortune Oil is pleased to announce that the High Court of Justice in England and Wales has today made an order sanctioning the Scheme by which Fortune Dynasty's acquisition of Fortune Oil is being implemented. The Court order sanctioning the Scheme has been filed with the Registrar of Companies.

In order for the Scheme to become fully effective in accordance with its terms, the Court will now need to confirm the associated Capital Reduction at the Reduction Court Hearing. This is expected to take place on 6 March 2015. Provided the Court confirms the Capital Reduction, it is expected that the Effective Date will occur on 9 March 2015.

[del44] 04/3/2015 15:25

From the iii board...
Many thanks for this...

I was at the court case this morning. It was adjourned for lunch and was due to start again at 2.05 but sadly I cannot be there for the afternoon. Representation from FD seem professional and accommodating to the minority shareholder group who are being treated generously by the judge.
At the time I left the following seemed clear.
The judge whilst recognised that that Fortune did achieve the necessary vote seemed surprised as to how few minority shareholders actually voted. I believe that only 14% of minority shareholders (representing 48% of the contested shares (not the consortium shares) actually voted.
Fortune Oil representatives referred to the CVR as an "embarrassment clause" , which led to a few sharp intakes of breath.
The judge seemed to be suggesting that the offer of 10p was a premium to the previously traded share price. I think ultimately this is how it may end up however;
• The judge seemed to be suggesting at one point that Fortune Oil were valuing the business at 10p a share and their stake in CGH at between 0 and 5p a share
• She seems to be warming to the idea the CVR element was presented in a way that many shareholders may have felt that there was a realistic opportunity that they would receive 15p
• She actually agreed with the investors chronicle document that 10p a share seems cheap.
When I left Fortune Oil representation had not had the opportunity to reply although they seemed to be taken a back a little.
I suspect in the end that the judge will allow Fortune Oil to proceed BUT she appears to be warming to the idea that all is not correct.
.... .... in the end you may not agree with the action of the minority group but fair play to them for sticking up from proper values. If they succeed today and are like minded then you should join the group, you know how.
By Nickname1973

[del44] 04/3/2015 12:55

The hearing this morning should have taken no more then an hour to conclude.
I would have expected another rns from the company, as to the outcome of the proceedings.
Nothing yet......

[del44] 04/3/2015 11:29

The court appearance today is for scheme approval (or not)as the case may be.

I think Friday is the next court appearance for capital reduction..

Ah sure life is full of twists and turns......

[thaiger] 04/3/2015 10:38

Like your expression of "free" lottery ticket to "win" 50% more! Those who hang on got nothing to loose as the 10p will be paid on 23rd if the court approve the capital reduction today. Judging from the share price no one believes the 5p will be paid but shareholders can only hope!

[via con] 04/3/2015 10:27

Del I´d imagine it´s temporary presently until all the boxes have been ticked, inorder to delist.

FWIW I was going to sell, but I decided to stay invested, as although it´s unlikely to materialise, it nevertheless grants us a "free" lottery ticket to "win" 50% more, which to be honest, unlike other lotteries, we all deserve to win this one !

GLTA

[del44] 04/3/2015 07:46

NOTICE OF TEMPORARY SUSPENSION OF LISTING FROM THE OFFICIAL LIST.......
Only temporary?

[del44] 04/3/2015 07:36

Suspended.....

[godin] 04/3/2015 06:30

no longer trading if i have understood correctly.

[del44] 03/3/2015 22:41

But I could be wrong ex!!!!

[exel] 03/3/2015 20:07

thanks Del, ex

[del44] 03/3/2015 18:28

I think...FTO will continue trading until the end of trading on the 8th of March, IF all court hearings go in accordance with what the Fortune Dynasty expect. I believe today was the last day of trading in which you could get the cvr rights with the shares.....

[exel] 03/3/2015 17:45

Not a big trade, Del, but this share price has certainly felt solid these past few days in particular. The market would take back 500,000 at the full 10p today. It seems that the MMs are clearly expecting the scheme to go ahead now, and the CVR to hold a tiny glimmer of hope for possible future value?, no more than that. We'll know more in due course. Meanwhile, I sense that is it. This stock won't be available from tomorrow, if I have read the papers correctly. Is that right? ex