Capricorn Energy Share Discussion Threads

[suetballs] 01/6/2022 10:19

OMG I lost a packet on tlw!
Suet

[tron22] 01/6/2022 10:18

Tullow Oil and Capricorn Energy on Wednesday said they have agreed to an all-share merger. Under the deal terms, Capricorn shareholders will receive 3.8068 new Tullow shares for each Tullow shares, giving Capricorn shareholders 47% of the enlarged firm.

[xxnjr] 01/6/2022 10:14

frazboy - sorry didn't see your comment on UKNS Tax the other day. The Q was answered today on the call. No additional Tax liability, as tax comes off the top line, or words to that effect.

[nigelpm] 01/6/2022 08:48

Definitely. Game over on that one.

[frazboy] 01/6/2022 08:44

hsfinch, it's the cash and reduction in debt for Tullow and the opportunity to slash Cairn's largesse (their G&A bill). Some sense in all that, yes?

[dunderheed] 01/6/2022 08:43

That will be interesting.
I think it will take quite a bit of time for G&A to get smashed but it really needs to so assume the Edinburgh gravy train will be stopping at some point although might take some time?

[frazboy] 01/6/2022 07:56

‘The Combined Group will have a resilient balance sheet, with pro forma 2021A leverage of 1.5x and $1.8bn of liquidity. Expected leverage of <1x at year end 2022 with rapid future deleveraging anticipated.’

I think the market will like the above. Clearly G&A costs at Cairn will get slashed. It’s a buy this morning I suspect

[jaf111] 01/6/2022 07:55

Let’s see how Mr Market reacts……or doesn’t!!!

[18bt] 01/6/2022 07:52

At least it keeps them in the FTSE250

[officerdigby] 01/6/2022 07:48

... well it stops them pi$$ing their cash up against the wall. Whilst the share price goes down.Whilst looking at the meagre cash generated from Egyptian assets?It was on a path to be a much smaller company. IMO.

[nigelpm] 01/6/2022 07:47

Wow. That's a great move. Fair play.

[silverstone1] 01/6/2022 07:47

AT THE CURRENT EXCHANGE RATE, RETURNING 169P PER SHARE VIA AN ISSUE OF B SHARES WOULD HAVE BEEN PREFERABLE BECAUSE THE ORDINARY SHARES WOULD STILL BE ABOVE 100P PER SHARE, THEREFORE, PROBABLY 50% MORE VALUE THAN THE TENDER OFFER AND BUYBACK PROGRAMME (WHICH HAS NOW ENDED)!

[frazboy] 01/6/2022 07:46

Tullow net debt will be nearer $1bn than $2bn post merger - finally they may get on top of it. Synergies? Just staff and offices I suspect. Perhaps the merger highlights the difficulty of finding any good acquisition in the current environment. Completely left field in my view, wasn’t expecting this.

[jaf111] 01/6/2022 07:40

Good deal maybe for Tullow but can’t see why this is good for CNE….

[catsick] 01/6/2022 07:36

Good deal , cne has too much cash and tullow too much debt, the combination is worth more than the sum of the parts

[jusmasel99] 01/6/2022 07:35

Cairn , Capricorn, Tullow, wonder what they will be called next year?

[oilinvestoral] 01/6/2022 07:35

Very good news for CNE shareholders. The cleaver brainy people "who can read a balance sheet" have been vindicated in supporting this astute management team... :))))))

[jaf111] 01/6/2022 07:26

At first sight doesn’t seem very attractive…..values CNE at 205p….

[officerdigby] 01/6/2022 07:16

Blimey they did something....Didn't think it was possible.

[nigelpm] 28/5/2022 07:16

Ah maybe. That would be even better.

[dunderheed] 28/5/2022 07:04

Nigel you've missed my point.
I think the deal should have been structured "before" tax position?
The tax at "source" is not CNEs problem likewise the tax upon CNE (post payment) isn't the acquirers issue either?

[nigelpm] 28/5/2022 06:54

Yes Dunder. That would be my thinking also. Tax doesn't kick in until now anyway so a slight reduction in the future payments net to cairn is probable but no impact on all that has gone