Cabot Energy Share Discussion Threads

[esrimeur] 16/3/2004 20:57

Jeff - yeah, I suppose its possible that these guys feel they have enough, but then one might have thought that they would also want conversion at less than 21.25p. Union, who arranged the loan from these folk (all very wealthy)is one of Gyllenhammar's companies. The deal was done over the phone in one day without any hitches and is described in a piece by the solicitor who conducted it on his practice's website (sorry, too tired to research, put Carbo plc & Union into google and you'll find it.) It reads too easy to be true, but probably is. I guess - and this is just educated speculation - that the terms of both the conversion and placing were agreed back in October and will be adhered to, in the Swedish ethic, but possibly, I would say just possibly,with an open offer to shareholders.

On the GMAC loan, this would be quite normal. It is not at all unusual for a secured lender to want the main existing stakeholders to commit further capital to a refinancing. Comfort that they will do so and reduced gearing.

A done deal, I am 99% certain. What is 100% certain, though is that nothing dodgy is happening here. Hodgson was a director of the FSA and Gyllenmammar is often wrong and often working behind the scenes, but has never been involved in any Shenanigans of any kind in the myriad small caps he has invested in.

CAB is as clean as a whistle on all fronts. The rationalisation was overdue. But do remember this. Carborundum is one of the most recognisable brands in the world to anyone who has worked with his hands. The worldwide brand would suffer, possibly terminally, if the UK arm collapsed. CAB will never be allowed to fail due to the global value of its franchise.

Any more for any more at 15p, the de facto offer, or shall I sell my business and buy the lot then retire to that tiny island on the Kenmare River I always fancied.

[jeff_v] 16/3/2004 09:03

Esrimeur - if it was the loan note holders who were the customers for the placing/rights issue back in October they all got the chance to buy shares at 14p from somewhere. They might have had their fill. Also, be an unusual condition on a secured loan by GMAC that they have to have an equity issue, wouldn't it?

[alexicacon] 15/3/2004 23:06

I'de have a few more @ 14p, borings much better than falling.

I think in this case no news is good news.

[esrimeur] 15/3/2004 14:24

Yep, agreed that's a mystery. I'd like to bet its the same folk if it is a placing. Frankly, I can't see shareholders taking up rights at 14p on this price - maybe some news to hike the price then a placing & open offer at 14p?

Whatever, it is the most boring stock I've ever held, bar none!!!

[jeff_v] 15/3/2004 12:55

Ok, thanks. Just can't see why it's taking so long given a rights issue was fully underwritten last October and was just a matter of finishing off the paperwork. Then they referred to it as a placing and now nothing...

[esrimeur] 15/3/2004 12:53

JV - but the cash for the warrants would only be £50k and in Feb they were still talking about needing £1.2mln. I'm sure 251069 is right to say raising that was a condition of the GMAC funding and if that is so, then it must be either a pre-agreed placing or underwritten rights issue.There is no other way to make sure it happens for GMAC.

[jeff_v] 15/3/2004 12:43

Begins to make sense and explain the warrants at 14p if the former loan note holders were the exactly the same people who were supporting the placing. Right. It would be very very nice if the company could confirm it no longer needs the placing. Then we can hope to trek north.

[25october1969] 15/3/2004 12:42

The next RNS they do will be to do with the appointment of new brokers

[25october1969] 15/3/2004 12:40

They have to raise new equity as that was part of the deal for the new financing, so no choice but the route is not yet decided i.e.placing, rights issue, whatever. I don't know why undecided

[esrimeur] 15/3/2004 12:37

And back down.......

[jeff_v] 15/3/2004 12:19

25Oct - why undecided? They don't need the cash and the hassle?

[25october1969] 15/3/2004 12:17

Not yet finally decided if they will go the placing route, decision soon and if placing will happen early -mid April

[jeff_v] 15/3/2004 12:04

I can't see a trade today? I know it can take hours to come through.

[esrimeur] 15/3/2004 12:01

Stroof! Placees could offload at no loss. But will they settle for just that?

[jeff_v] 15/3/2004 11:31

A positive move! Haven't seen one of them for a while.

[alexicacon] 11/3/2004 14:46

Short term this looks pretty flat, but medium term the only way is up. 30p will be no problem imho.

[jeff_v] 11/3/2004 12:27

Not sure what this means for the placing now...if they've signed for 14p at least there is no way you can buy them for that amount. At the moment...

[jeff_v] 11/3/2004 10:48

Dropped the bid to below 14p. Thought they might have dropped the offer.

[esrimeur] 11/3/2004 09:41

I'm blessed with an inate sense of timing.......

[esrimeur] 11/3/2004 09:25

At least during a bloodbath like this morning's it is a safe haven. LOL!

[jeff_v] 10/3/2004 10:03

Don't just sit there! Rise! Fall! Do something!

[jeff_v] 09/3/2004 10:06

This feels like a very long 3-5 weeks before placing is away.

[25october1969] 08/3/2004 10:37

Nope I am still around waiting on the results. now have 275k

[jeff_v] 08/3/2004 10:32

25Oct - that 25k sell last friday. Haven't lost your nerve have you?

[jeff_v] 05/3/2004 16:59

This is from the interims so old news but I think we can read between the lines in terms of cost reduction:

United Kingdom. The Razor and Rubber manufacturing operation in
Manchester has responded well to increased management focus. Output is up and,
though small, the operation is nicely profitable. Anglo, our distribution
business, has closed further three depots and made other cost reductions. Again,
as our market reputation has begun to improve sales have stabilised. We
thereforeanticipate a return to profitability in the next few months.