EnCap: Liquidating. A Bargain at 120P?

Energy Capital may be a bargain at these prices, near 120P.

Chart: 1 Year


They intend to liquidate under the management of the current mangement
This will initially mean spending cash of £18 million on buying back shares.
There are approximately 48 mn. shares outstanding and at 130P per share,
ECP can buyback about 13.5mn shares, or about 27%. This should serve
to increase NAV per share.

NAV was estimated by management (on xxxx) to be: 162P per share:

"The $87.2 million valuation, which represents the Directors' best estimate, this equates to $2.35 being 161.8p per share using the exchange rate of $1.4515/£1 at 31 December 2001 or 164.9p using the current exchange rate of $1.4242/£1, the
Company's net assets can be summarised as follows:

............................................... $m
Cash, net of current tax liabilities ........ 43.1
Less provision for EnCap's performance fee... (7.6)
........................................... ______
Net Cash..................................... 35.5
Nominally listed shares,
...supported by market quotations ........... 20.6
Project equity investments ................... 3.2
Other investments ........................... 31.4
........................................... ______
............................................. 90.7
Net liabilities and provisions & taxation.... (3.5)
........................................... ______
............................................. 87.2