Leyshon Energy Share Discussion Threads

[flyfisher] 19/2/2015 10:44

Boadicea, The question that remains, arising after removal of the shares from an ISA.

Why removal?

[rvsy38] 19/2/2015 09:49

Boadicea - I suggest you clarify the position with the provider of the ISA as this may vary from provider to provider.

[boadicea] 19/2/2015 09:03

michmcd - The RNS announcement is quite clear -

"Payments of the Cash Distribution shall be made in Australian dollars to those Shareholders with registered addresses in Australia and to all other Shareholders/Depositary Interest Holders in GB pounds sterling. All payments will be made by cheque, sent by post and expected to be received by the end of February 2015."

If shares are held by a nominee, they are the shareholder who will receive the cheque and credit it proportionally to the beneficiaries accounts.

The question that remains, arising after removal of the shares from an ISA, is whether the resulting cash will be credited within (where it belongs) or without the ISA. I can see potential for conflict here.

[michmcd] 18/2/2015 07:58

It is to be paid as a divi, although when seems to be in question - TDW are advising they havnet been paid yet, although individuals tend to get paid first then brokers who have to split the money up to the individual account holders. In the meantime the share value has been zero'ised! I am hoping to be paid shortly to try and recover some appalling loses in Leyshon in other areas whilst oil is low. Caza, eMe, Hawk look strong medium term bets to double.

[cricklewood] 13/2/2015 09:11

I never sold before it was delisted, how do i get my money Halifax don't do it ?

[useless23] 10/2/2015 17:05

Good riddance

[horndean eagle] 09/2/2015 17:51

4.1p confirmed today. there is potential 0.2p within a year. That is assuming no additional warranty claims turn up.

[propunter23red] 06/2/2015 10:19

Any news on the timing of the cash distribution? Looks like a big player is soaking up everything around 4p...

[flyfisher] 02/2/2015 17:55

Sales keep going through at close to the cash return level, which makes me think about the perspective of the buyer.
Are they buying for a small arbitrage return, or is their a future value in either a sale of the remaining asset, a sale of the company for use of any tax losses, or use of the shell by another management team.
A similar wind down occurred recently in 3leg and after the initial payout a proposal arose from a new team which gave a new life for the company.

Thoughts anyone.

[rvsy38] 29/1/2015 18:04

I would be very grateful if anyone going to the General Meeting tomorrow could post a note about the proceedings.

[scallywag] 29/1/2015 15:07

On the face of it, as the ex dividend date must be before the delisting, common sense suggests that whenever it is paid, the dividend ought to go into the ISA. However, I've asked for written clarification from my broker.

[huxley1] 29/1/2015 14:59

Would it depend on the record date for the dividend?

[rcturner2] 29/1/2015 14:48

It is inland revenue rules, you cannot hold unlisted shares in an ISA.

[scallywag] 29/1/2015 14:46

rvsy38 - thanks for the advice. I'd assumed that whatever happens to the remaining holding in the unlisted company, the "dividend" would be paid into the ISA. From what you say, this isn't necessarily going to be the case. By selling the ISA holding, the capital loss isn't going to be of any use, but at least I would avoid possibly paying tax on the "dividend". I will ask my ISA broker.

[rvsy38] 29/1/2015 14:27

Scallywag

My broker told me that delisted shares cannot be held in an ISA for more than 30 days after being delisted. Thereafter they will be transferred by the broker to another ( non tax free ) account. So if the dividend is not received within 30 days from the delisting the dividend will go into a non sheltered account and be liable for tax if one is a higher rate taxpayer.

I didn't want to take the risk of paying tax so I sold the shares held in my ISA.

This is only my experience and I strongly recommend that you check your situation with your broker.

[boadicea] 29/1/2015 14:15

Some arbitrageur, probably in a tax free location, will be buying them in for an expected margin of ~0.15p in the coming pay-out.

[scallywag] 29/1/2015 13:38

At least that's made the decision a bit easier: no way am I paying tax on the miserable remains of my investment here, so I've sold. I have, however, retained the shares I hold in an ISA as a compromise. I am curious about who bought 450,000 of them at 3.96p this morning.....

[boadicea] 27/1/2015 19:29

Confusing it certainly is, as it appears to run contrary to UK company law. I take it as a further lesson to be extremely careful about investing in sharply run companies domiciled in tax havens.

Paying as a dividend seems to be a quirk of BVI law (and possibly requires delisting in London before it can happen?)
So we may end up paying tax on what's left of our investment but that presumably increases the capital loss which is only of value to those that require it to set against gains.
All this assumes the necessary resolution is passed, requiring a 75% majority which it might not get on Friday...

"Notice is hereby given that the general meeting of shareholders of Leyshon Energy Limited will be held in The May Fair Hotel, Stratton Street, Mayfair, London, W1J8LT, The United Kingdom on 30 January 2015 at 3:00p.m."
[Extract from ]

Personally, I think I would prefer voting against to force them to adopt the capital route.

[richman777114] 27/1/2015 16:25

so it's a dividend

difficult to know what to do here:

(1) sell and crystallise the loss in 2014/15, but get less than 4.1p and potentially miss out on (a) any further distribution from sale of gas asset (which atherley as a significant shareholder will be motivated to sell) and (b)any distribution from the liquidator once liabilities settled
or
(2) hold on for the 4.1p dividend but pay tax on it and then make a negligible value claim for cgt purposes post liquidation - risk of shares held in ISA being ejected prior to receipt of dividend

then there's the matter of whether the shares go ex-entitlement/ex-dividend in the coming days - to my mind they have to or shareholders on the register as at 10th feb could have sold at 4p or so AND receive the dividend!

all rather confusing

[boadicea] 23/1/2015 10:12

(Double entry)

[boadicea] 23/1/2015 10:12

SOS100 - "... will those days ever return?"

Probably not before you get to Carey Street.

[boadicea] 23/1/2015 09:57

richman777114 - The exact position here is a little obscure compared to many other companies.
Reduction of nominal capital is something companies have to do (inter alia) to issue new shares in a situation where the issue price would be below the nominal value of the share.
However, in the case of LEN the shares are "npv" meaning (I assume) "nil par value" in which case no such limitation would apply. Nevertheless and curiously, the share capital is shown in their accounts as US$82.236m or 42.05 cents per share (which may have originated as something like 25p per share). Possibly, if the share had a nominal value, this might be shown separately as a share premium but for practical purposes it clearly does not exist and is a purely notional figure.

We do know that the company can get shareholder permission to buy in and cancel shares and that might be the lowest cost method of proceeding if there is no legal limit on the proportion which can bought in. All will become clear (we hope) at the forthcoming General meeting.

[richman777114] 21/1/2015 12:23

re tax position doesn't a reduction of capital require court sanction, yet no mention in circular and circular refers to 'cash distribution' rather than 'capital reduction/distribution'?position remains unclear to me-clearly company does not have distributable reserves to pay by way of dividend

[sos100] 21/1/2015 10:33

i need bigger % returns - meaning in normal markets two double baggers per year is not too much to ask?

will those days ever return?