British Energy Share Discussion Threads

[sarahbudd] 17/1/2005 08:42

Anyone know how i can trade these shares as I still have a cert (sent from Idealing ISA when they delisted) for original number of shares bought!
Has anyone had a NEW share certificate from thweir brokers?
Thanks in advance

[kordeiv] 17/1/2005 07:54

this is going to be interesting.............................>

[shirishg] 15/1/2005 03:50

Post removed by ADVFN

[bgyered] 14/1/2005 23:17

January 14, 2005 7:12am
Europe Intelligence Wire


BRITISH Energy (BE), the UK's largest power provider, will re-list next Monday if Edinburgh's High Court today approves a rescue plan which hands control to its creditors.

With the nuclear operator's shareholders and creditors already having approved the GBP 1 billion debt-for-equity swap, all the indebted company now needs is a court sanction for the plan to go ahead.

"We don't expect any appeals against the plan," a source close to the creditors said yesterday.

Trade in BE's existing bonds has completely dried up as liquidity shifts to new bonds and shares - yet to be issued - indicating the market expects the re-list to proceed on Monday, one hedge fund trader said.

These new shares were trading independently at 315-320p yesterday, while the bid-ask spread of the current bonds was 275-280 per cent of face value earlier this week, the trader added.

Indebted BE agreed the rescue deal with the government and major creditors in 2003, giving creditors new bonds and 97.5 per cent of the company in exchange for cancelling GBP 1bn of debt, and leaving shareholders with just 5 per cent of the company.

BE bond prices have risen from as low as 40 per cent of face value in 2003 - when some investors in distressed debt bought in - to approach 300 per cent now.

[the knowing] 14/1/2005 23:11

Great news for you all !

[bgyered] 14/1/2005 23:00

More evidence of how HMG brought about BGY's restructuring. One more nail in Hewitt's coffin I trust. This from Evening Standard:

NUKED SELL-OFF: British Energy (BE), the nuclear electricity generator, collapsed when wholesale electricity prices fell below the cost of production a couple of years ago. Inevitably, the Government could not allow all those nuclear reactors simply to be abandoned. But almost in pique at having its hand forced, the Government insisted BE sell off all its other interests regardless of whether the timing was right to maximise value and therefore mimimise what the taxpayer had to cough up.

The financial results of Canadian nuclear generator Bruce Power would not normally be of any particular interest to anyone in Britain, but this is a company in which British Energy held an 82 percent stake. As a condition for short-term financial support in late 2002, Trade and Industry Secretary Patricia Hewitt demanded this be sold immediately. The result was a fire-sale price of C$700 million (306 million pounds).

Bruce's subsequent financial results make the decision look idiotic. In 2003, profits before tax were C$286 million. Restarting of mothballed units resulted in a 40 percent increase in output in the first three quarters of 2004. The removal of a price freeze for residential and small business customers in early 2004 has raised Canadian electricity prices by between 10 percent and 30 percent, so a major increase in profits can be expected when results for 2004 come through. The company is planning further expansion in 2005 and thereafter.

Since the company is not responsible for future decommissioning and disposal of spent fuel, there is no need to make provision for future costs.

It seems Hewitt forced a sale at less than three times current year profits and about 1 1/2 times 2004 profits, probably less than a quarter of its real value.

[praipus] 14/1/2005 22:40

MrBA5hir,

Off topic. By any chance are you the same BA5hir who was implicated in a cricket ground incident before leaving school?

[pc4900074200] 14/1/2005 21:49

Mine's back already.

8:00am this morning.

pc

:-]

[jlrussell] 14/1/2005 21:40

time to put the ticker back on the monitor then... monday it is...!

[pc4900074200] 14/1/2005 21:14

I see that BGYNY are up 0.5 or 2.4%

current price 21.5

pc

[mrba5hir] 14/1/2005 20:52

British Energy rescue approved

By Andrew Taylor in London
Published: January 14 2005 20:04 | Last updated: January 14 2005 20:04

The financial rescue of British Energy was on Friday approved by the Scottish High Court. The decision removes the final barrier to the restructuring of the nuclear generator and paves the way for the listing of its new shares in London on Monday.


A study by UBS, the investment bank, estimated that the stock market value of the generator, which collapsed in September 2002, could be more than £1bn ($1.9bn) following the £5bn government-backed rescue.

British Energy had a stock market value of just £88.4m last October, when it delisted its former shares to prevent rebel shareholders from throwing out the rescue plan. Fees of £104m have been paid to lawyers and financial advisers during the two years it has taken to negotiate the deal.

Under the rescue, existing investors will be left owning just 2.5 per cent of the new shares with warrants to acquire another 5 per cent. Creditors, following a debt-for-equity swap, will own the rest. British Energy, which had total liabilities of about £5bn, warned shareholders that it could be forced to go into administration if they rejected the deal.

The terms were overwhelmingly approved by shareholders at a meeting on December 22, leaving only Friday's court approval to complete the restructuring. European Union approval was granted in September.

The generator was brought to its knees two years ago by a collapse in electricity wholesale prices, which left its nuclear power stations losing £5m a week.

The group has since sought to sell more of its power on fixed-price, long-term contracts to provide more stability for business. Some 40 per cent of its output is sold to industrial customers on one and two-year contracts. This has has meant that British Energy has been slower to benefit from the recent recovery in wholesale prices.

[cimbom] 14/1/2005 15:45

British Energy says court gives green light to restructuring UPDATE
AFX


(Adds detail, background)

LONDON (AFX) - British Energy PLC, the nuclear energy producer, is set to complete a two-year old debt-for-equity restructuring after a Scottish court today approved two separate schemes of arrangement.

'The support shown by all of our stakeholders, notably shareholders, creditors and the government, has allowed us to successfully complete one of the most complicated restructurings in UK corporate history,' chairman Adrian Montague said in a statement.

Chief executive Mike Alexander said the company was now determined to ensure it was 'an efficient and competitive player in the UK electricity market'.

British Energy, whose shares are expected to be re-listed on the London Stock Exchange on Monday, was to issue a further statement later Friday.

The company is expected issue around 561 mln new shares.

Earlier Friday the new stock unofficially traded at 270 pence, at which price the company would have a market value of around 1.5 bln stg.

The old shares were suspended last October at 14.5 pence.

Today's court ruling comes after shareholders and creditors on Dec 22 approved controversial restructuring proposals which will see bondholders take control of 97.5 pct of the company's equity.

The debt-ridden group, which produces 20 pct of Britain's electricity, was forced to strike a deal with creditors in October 2003 to stave off bankruptcy.

Rebel shareholders, led by US hedge fund Polygon, had threatened to prevent the restructuring from going ahead, claiming it was unduly favourable to creditors given a subsequent rise in wholesale energy prices.

But they backed down under the threat of legal action.

[e-mail]

rhb/ak

[cimbom] 14/1/2005 15:44

British Energy says court gives green light to restructuring UPDATE
AFX


(Adds detail, background)

LONDON (AFX) - British Energy PLC, the nuclear energy producer, is set to complete a two-year old debt-for-equity restructuring after a Scottish court today approved two separate schemes of arrangement.

'The support shown by all of our stakeholders, notably shareholders, creditors and the government, has allowed us to successfully complete one of the most complicated restructurings in UK corporate history,' chairman Adrian Montague said in a statement.

Chief executive Mike Alexander said the company was now determined to ensure it was 'an efficient and competitive player in the UK electricity market'.

British Energy, whose shares are expected to be re-listed on the London Stock Exchange on Monday, was to issue a further statement later Friday.

The company is expected issue around 561 mln new shares.

Earlier Friday the new stock unofficially traded at 270 pence, at which price the company would have a market value of around 1.5 bln stg.

The old shares were suspended last October at 14.5 pence.

Today's court ruling comes after shareholders and creditors on Dec 22 approved controversial restructuring proposals which will see bondholders take control of 97.5 pct of the company's equity.

The debt-ridden group, which produces 20 pct of Britain's electricity, was forced to strike a deal with creditors in October 2003 to stave off bankruptcy.

Rebel shareholders, led by US hedge fund Polygon, had threatened to prevent the restructuring from going ahead, claiming it was unduly favourable to creditors given a subsequent rise in wholesale energy prices.

But they backed down under the threat of legal action.

[e-mail]

rhb/ak

[praipus] 14/1/2005 12:03

agnes3 - you may be right. However ECWC NAV from RNS (on the ECW news) which excludes wind up entitlement was £2.30 excluding windup entitlements.

Therefore ECWC shares trading at 40% discount this is too much and I sincerely dont believe there up with other events yet and potential forthcoming capital raising.

That said caution is sometimes a good thing.

[agnes3] 14/1/2005 11:42

oops too late its changed, but same comment applies, even more so

[yuka] 14/1/2005 11:39

Yes snogger - assuming £3.

[praipus] 14/1/2005 11:08

agnes3 any chance you could change the graph you show to ECWC?

[snogger] 14/1/2005 11:06

Does anyone agree tyhat this looks equals £0.15 for the old shares

[praipus] 14/1/2005 11:00

Sorry wrong EPIC look at ECWC.

The graph you show ECW are the income shares with max NAV of only £1.00.

The ECWC are the Capital Shares NAV is £2.30 (excluding wind up entitlements) and share price £1.38 is struggling to keep up with the speed at whcih the manager is able to grow the assets.

Histroically investors were frightened off by a 70% drop (look further back on graph) in share price option deals going wrong etc. However now just undervalued IMHO.

[agnes3] 14/1/2005 10:55

Looks well factored in to me, unless something else propelled it?

[praipus] 14/1/2005 10:53

fbrj - new as far as I can tell. Please note the value is £9.4 million not the number of shares my mistake I have changed the previous post too.

For clarity Ecofin have two classes of share

Income shares ECW and Capital Shares ECWC (the ones to buy IMHO.

[fbrj] 14/1/2005 10:39

praipus - are the 9.4m shares in the RNS you refer to, old B Energy shares or the new ones post reconstruction?