Biofuels Share Discussion Threads

[seatrader] 31/7/2007 10:18

Large spread now, normal service has now resumed.

[seatrader] 31/7/2007 09:47

Will they have to buy the remaining shares before the delist date of the 2nd August.

[pierre oreilly] 31/7/2007 09:43

Pierre- I think that is precisely the reason Barclays cannot compulsory purchase the remaining shares- who says what they are worth? If the 6% are a separate company they would have to decide, by majority, if they were willing to sell and for what price.

There is no doubt whatsoever that Barclays, through their subsids, can buy up all the shares they don't own 9and to rid themselves of the inconvenience, cost, risk etc of shareholders, that's what they will do, and that's why the Companies AcT has these provisions). The only unknown is the price they have to pay to the minority shareholders. We even know that they have to pay a 'fair' price - thne only unknown is how that fair price is determined. But it has to be seen to be fair by the courts/regulatory authorities.

[parvez] 31/7/2007 09:30

I stand to be corrected - I was told that size is only 25k however see NMS to be 50k....

[parvez] 31/7/2007 09:25

I guess those who see the long term value will buy and those who have shorted big time will be looking to close. Only offered in size of 25k so expect volatility!

[seatrader] 31/7/2007 09:15

Up again, we are in for rollercoaster rides today.

[seatrader] 31/7/2007 09:00

Hold on to those shares, they may be some life left.

[parvez] 31/7/2007 08:58

I bought some more yesterday. If Barclays were going to purchase the other 6% they should have made it clear in the first place. Banks don't like to own companies so expect that once they have cleaned up the mess and put the company back on track, they will float it off again! On for the long long term!

[seatrader] 31/7/2007 08:58

Up 24% then back down to 14%, what's going on here!

[fludde] 31/7/2007 08:58

Pierre- I think that is precisely the reason Barclays cannot compulsory purchase the remaining shares- who says what they are worth? If the 6% are a separate company they would have to decide, by majority, if they were willing to sell and for what price.

[seatrader] 31/7/2007 08:50

Up 12% today, Why?

[calisar] 31/7/2007 07:55

nfranks - Your last statement sounds like the most reasonable statement made. Lots of conjecture but no clear rules here so for those of use still holding, it's still a gamble.

Good enough. I went in on a gamble, screwed up and held on. So worthless now, I have no really risk in holding on a bit longer.

Thank you all for the responses. Very worthwhile seeing what possibilities exist.

[nfranks] 30/7/2007 23:30

PO, I ain't saying anything, as I just don't know what happens in general in cases like this or what will happen in this particular case. I agree with Esmerelda and don't believe the intention is to compulsory purchase, doesn't mean it can't or won't happen.

There are a few original shareholders/ex-directors that still have a substantial holding (as far as I know) and may be still locked in so couldn't have sold for a higher price. So why set up this restructuring if the plan is to compulsory purchase as that would be unfair on them (again, might not stop it happening). Perhaps it is just better than going bust as you've said.

Sounds like none of us really know what's doing to happen so it's a learning exercise for us all!!!!!

[pierre oreilly] 30/7/2007 21:44

Well Earls Nook has said it will put in place a facility to enable holders to get rid of their shares voluntarily (probably as a prelude to them being acquired involuntarily). My guess (and thats all I can do since I don't know how they are obliged to value the company remnants) is that both disposal possibilities will be at the same price (I'm just hypothesising, don't hold me to this) and that price will be the equivalent of the value/share of the d4e.

A good stab at that value may be to say Barclays got 94% for £40m, putting a value of 6% (i.e. earls nook) of around £2.5m. With £50m shares, that works out at 5p/share. At least that is what I would argue if I were still a BFC (or Earls nook) shareholder!

Thinking about it, I bet Barclays will have a different view of the value of each earls nook share - I suppose we'll just have to wait and see.

[esmerelda] 30/7/2007 20:55

In theory you are right to say that once a company has acquired over 90% of the shares in another company then it can make a compulsory offer to buy out the remaining shareholders. However that is not a given and it doesn't have to happen that way. Judging by all the announcements to date there appears to be no intention on the part of Barclays (or more accurately Broomco) to do so.

There are also rules in place that determine what price it has to offer the remaining shareholders, thus protecting them from having their shares 'knicked' from them by a predator. Given your appreciation of company law would you like to suggest what price this might 'hypothetically' be for the Earls Nook shareholders? (For the avoidance of doubt I'm not being sarcastic; I've no idea and can't work it out because it was a D for E rather than an Offer that got them 90+% in the first place).

[pierre oreilly] 30/7/2007 20:06

n, Newco is a generic term so financial documents can be copied with the minimum of changes, and so advisors and the like can extract the maximum amount of fess for the least possible work.

In this case, Newco is Broomco(4091) Ltd, and is owned by other companies which are subsids of Barclays.

I can't see your logic. Broomco (4091) Ltd will own in excess of 90% of
Biofuels Trading, so have the right to acquire all the remaining shares whoever they are owned by - individual shareholders or, in this case, Earls Nook, (which of course is owned by ex-Biofuels shareholders).

Or are you saying that Barclays can't (directly) buyout minority holders because it is Broomco (owned by Barclays) which is the 94% shareholder?

[scribbler101] 30/7/2007 19:15

nfranks - I understand that Barclays used Wolf Olins to develop the name. Only cost £250,000.

[nfranks] 30/7/2007 17:00

Calisar - They'll still own shares in BFC or Earls Nook as it will be renamed.

Barclays will own 100% of a new company called Newco (wonder how long that took to think up).

Biofuels Trading will then be made up of Newco (94% of Biofuels Trading owned by Barclays) and Earls Nook (6% of Biofuels Trading owned by existing shareholders)

Which is why I think Barclays (Newco) WON'T be able to compulsorily purchase Earls Nook shares, they are separate companies, but I might be wrong.

[sofa spud] 30/7/2007 16:52

If BFC delists, presumbly it will still be a limited company, just not an AIM PLC any more - so share trading would be more difficult. Anway I'm keeping my holding which is worth almost nothing and was never worth much - there's no point in cashing it in unless I have to!

[calisar] 30/7/2007 16:45

So once this goes private, will stocks people own be transferred over, wiped out, cancelled, .....?

[parvez] 30/7/2007 12:49

Well done to the shorters - now is the time to close all those positions - expect to see some volatility this week.

[hercy] 30/7/2007 11:35

You must remember that some people will prefer to close there position as the spread betting and CFD companies also are uncertain how they will wind up there position. Hence people will have to buy stock today if they wish to close a short. May be later a huge short squeeze could be on the cards.

[paul e] 30/7/2007 11:11

none whatsoever I'm afraid

[the_doctor] 30/7/2007 11:10

That said, I wonder if theres a possibility that they could negotiate better terms or even delay d4e if oil prices have risen high enough?

[the_doctor] 30/7/2007 10:48

andrbea - its most likely a shorter claiming his profits!