Cabot Energy Share Discussion Threads

[nutty1] 16/8/2019 09:51

Kinwah: Thank very much for posting that, I'm much obliged to you.

I shall now go and learn about 'whitewashes'!..

[kinwah] 15/8/2019 23:06

Nutty the answer to your question is contained in the announcement dated 19.12.17. The subscription took H2P through the 30% level which as you understand would trigger a mandatory bid. However the company got what is called a Rule 9 waiver or 'whitewash' from the Takeover Panel as it was approved by shareholders. I think when a shareholder is over 50% then there are not many restrictions on increasing that holding as they already have majority control.

[investoroilandgas] 15/8/2019 20:57

Nutty1, my understanding is that a 30%+ shareholder has to declare whether they intend launching a bid for the entire shareholding of a company. The RNS issued on 10 July 2019 stated:-

"Further to the Subscription, H2P has indicated that, pending the conclusion and terms of the ongoing Canada asset-level debt finance discussions, it will consider providing additional equity funding, if needed, to support the Company's operational activities and work programme through to the end of 2019, alongside other shareholders". The last words are not consistent with the growing view that H2P wants to take over the company & get rid of the small Cab shareholders.

The key issue for me at the moment is, can Scott Aitken deliver a debt funding deal?
I hope he can !

[nutty1] 15/8/2019 20:23

Investoroilandgas:

Thank you for at least having a go at trying to answer my query. I'm still not clear though as to how H2P has got round the requirement to make a mandatory bid once the 30% threshold is crossed.

Like you, I am wondering where the Garraway stake has gone to.

The whole situation feels a little odd and its tempting to ask the LSE regulators if they could just verify that what is going on here is all OK.

[investoroilandgas] 15/8/2019 20:05

High Power Petroleum (H2P) owned c. 53% of Cabot shares prior to the capital raise in March 2019, it would appear that H2P has not been obliged to launch a bid for Cabot Energy. Interestingly, the Cabot Energy website has updated the "Largest Shareholders" page, as expected following today's RNS Garraway are no longer in this table following the entire sale of their shareholding.H2P share holding does not appear to have increased from 66.22%, they declared this percentage holding when they recently bought new shares @ 9.25p.
I'm intrigued to know where Garraway's 9.07% shareholding has gone, is there another RNS about to be released announcing a new shareholder?

[maxk] 15/8/2019 19:16

It's a late parrot!

[nutty1] 15/8/2019 18:22

I'm not a finance type, but I found this on a UK Practical Law website on rules around stakebuilding. I would be grateful for comments and/or clarification from anyone out there with more insight on this subject than me. In particular, can someone please remind me how H2P has managed to amass such a high stake in CAB without being forced to make an outright bid?


From UK Practical Law:

"When must a mandatory offer be made?

Once a person either:
Acquires 30% or more of the target's voting rights.
Is interested in shares carrying 30% to 50% of the target's voting rights, and that person or a concert party acquires an interest in any other voting shares in the target."



"When can minority shareholders be squeezed out?

Once 90% by value of the shares subject to an offer and associated voting rights are acquired.
Alternatively, 100% of a target company's share capital is acquired by a bidder under a scheme of arrangement approved by a majority in number, representing 75% in value of each class, of shareholders attending and voting at the relevant shareholder meeting."

[nutty1] 15/8/2019 18:12

Delisting coming; small shareholders will be pushed out at a rock-bottom price..

[investoroilandgas] 15/8/2019 17:53

City Financial Investment were the original acquirers of the Cabot Energy shares, I understand the funds of City Financial Investment were transferred to Garraway Capital Management LLP a few months ago. Selling 9% + of Cab shares has been done at rock bottom prices, no word yet on who has acquired them.

Debt discussions still ongoing, will Scott Aitken be able to deliver a funding deal which will pay for the 2019 drilling campaign?

GLA

[kinwah] 15/8/2019 14:02

So a holder previously of 9% of the Company sold out 2 weeks ago but there still hasn't been an announcement from the purchaser, of their increased shareholding. Yet in the meantime we have seen the shares fall from 9p to 4.5p. This company will not be endearing itself to AIM Regulation. Probably about time it took itself off AIM.

[currypasty] 09/8/2019 08:53

I seem to remember we were all fully supportive

pass the hob nobs

[bionicdog] 09/8/2019 08:22

I never said a word against him.

[currypasty] 09/8/2019 08:20

muzzer was a saint... compared

[maxk] 08/8/2019 20:32

Were you in back in the good ol days?

[fatslag69] 08/8/2019 19:44

Delist countdown!

[bionicdog] 08/8/2019 19:22

I never did!

[maxk] 08/8/2019 18:04

And to think we used to moan about Muzzer back in the day.

[maxk] 08/8/2019 18:03

And to think we used to moan about Muzzer back in the day.

[bionicdog] 08/8/2019 17:19

Curry
Was that a suggestion for a new name?

[fatslag69] 08/8/2019 17:16

I do think Delist is on the cards.
Financing will never come. And the “independent” directors will do what their masters say.

[currypasty] 08/8/2019 16:59

disaster zone

[heaven] 06/8/2019 16:23

Time for another share consolidation or name change!

[investoroilandgas] 01/8/2019 17:05

Wanderingmariner - Why did H2P not take Cabot over at the start of this year if they want to delist it? H2P have been putting the majority of the cash in to keep the company solvent.

The answer to which large shareholder sold today should hopefully be revealed in the coming days. I do not have a large investment here, but it has certainly been a roller coaster ride.

[investoroilandgas] 01/8/2019 16:53

10 July 2019 H2P subscribed for 4,336,466 shares @ 9.25p raising $0.5 million before expenses. Either Garraway Capital Management, Cavendish Asset Management, Mr E Krafft or Northeastern Oilfield Services have sold 3,420,728 shares today, an RNS should be issued confirming who sold.