Coastal Eng Share Discussion Threads

[kfr20] 09/11/2012 18:41

I see Oiljack over on IV believes the company will formally end next week.

[dukedosh] 09/11/2012 18:38

IMO, tree shake by the broker houses to get pi shares on the cheap. No news out there to suggest otherwise. I'm holding close and firm for the end game which could be merely a week away. $23 minimum is 15% minimum premium from here! If the offer is pulled then we have the same upside as we had last week. A Win - Win IMO!

[melody9999] 09/11/2012 18:29

can anyone shed any light on the price action? tree shake over the pond or perhaps some rumour such as CEO are not selling?

[melf] 09/11/2012 10:45

Nice to see a buy going through at 1385p (C$22) onwards and upwards!

[dukedosh] 09/11/2012 09:14

Melf, that's my current target and very realistically in reach in the short term should we get the news and or better offer as support.

[melf] 09/11/2012 08:54

Well I was looking for C$30 a share - then they can have mine.

Might be handy to have W.C. Phelps on board.....from the company's website:

"While at Citigroup, Mr. Phelps advised on numerous M&A and financing transactions."

[dukedosh] 09/11/2012 08:37

"Deal Multiples

Buyers in those transactions paid a median of 14.3 times earnings before interest, taxes, depreciation and amortization, the data show. Coastal Energy was valued at 6.5 times Ebitda as of yesterday."

If we get close to that, then Rivaldo, this time next year we'll be millionaires!

[rivaldo] 09/11/2012 07:18

A "bidding war" about to start for CEO....hopefully:



Extracts:

"It seems very likely that there could be a bidding war here," Sachin Shah, a Jersey City, New Jersey-based special situations and merger arbitrage strategist at Tullett Prebon Plc, said in a telephone interview. "The PTT's of the world are going to be looking at these assets. This is in their backyard," he added. "A state-owned enterprise could be competing against multinationals and other state-owned enterprises. That is good for Coastal Energy shareholders." "

""If this offer was confirmed, we recommend shareholders not to take it, as we believe this may just be a starting point," the London-based analyst wrote in a note to clients yesterday.

Bids could top C$26 a share, Chornoboy said. Macqueen estimated Coastal Energy's net assets could fetch as much as C$26.50, and said a buyer could pay that amount and "still realize significant upside."

"Deal Multiples

Buyers in those transactions paid a median of 14.3 times earnings before interest, taxes, depreciation and amortization, the data show. Coastal Energy was valued at 6.5 times Ebitda as of yesterday."

[thegreatgeraldo] 08/11/2012 21:36

It'll be interesting in the next few days or so to see what the insiders have been up to this week on the trading front

[luminoso] 08/11/2012 18:42

Interesting guy, this Oscar Wyatt. I guess long termers know all about him, so sorry if this is old hat . A brief resume of his life is at the bottom of the article in this link. Ignore all the first bit about CEO as its three year old analysis :-



Good bloke to have on your side. Would not want to be up against him !

[scottishfield] 08/11/2012 17:12

well the canadian index is certainly giving it a bit of welly, perhaps another shove tomorrow & we'll end on a high note again.

[dukedosh] 08/11/2012 17:01

* A little bit more....

* Expect a response to the offer next week?

* Is this reporter in the know as she covers "health care"?




Houston's Coastal Energy has takeover offer from Indonesia's Pertamina

Houston Business Journal by Bayan Raji, Reporter

Date: Thursday, November 8, 2012, 8:27am CST


Bayan Raji
Reporter- Houston Business Journal
Email | Twitter

Houston-based Coastal Energy Co. received a takeover offer from Indonesia's state-owned PT Pertamina.

The Houston company has market value of $2.3 billion, and an Indonesian buyout would join the trend of Asian producers seeking to expand, Bloomberg News reported.

Pertamina submitted a proposal to major shareholders of Coastal Energy, and Pertamina director Mohamad Afdal Bahaudin told Bloomberg he expects a response next week, but did not disclose a price.

Oil and natural gas explorer and producer Coastal Energy saw its Toronto-traded stock gain 6.3 percent yesterday. A buyout would leave the Indonesian company with oil assets in Thailand and Malaysia.

Analysts told Bloomberg the company would be interested in bringing some of that oil home to Indonesia.

Pertamina may offer $23 a share, valuing the target at $2.6 billion, the Financial Postreported.

Coastal Energy was founded in 2004, and has 100 percent ownership in two blocks in the Gulf of Thailand and stakes in four concessions in the Khorat plateau in Thailand's northeast, according to the company's website.

Texas oilman and billionaire Oscar Wyatt owns about 26 percent of Coastal Energy.

In response to the potential transaction, the company posted, "There can be no assurance that any transaction will occur" on its website.

Bayan Raji covers health care.

[luminoso] 08/11/2012 10:23

Both a good read. Thanks. They are going to have to offer £17 or over, I guess.

[rivaldo] 08/11/2012 09:33

Thx dukedosh - it's interesting that upcoming news flow just in the next two months alone could add £3/$5 to NAV. A long way to go in any bidding war methinks.

More colour on the bidder here:

[dukedosh] 07/11/2012 22:13

Here's First Energy's note, courtesy of iv. These FE guys have a better handle on this stock than all the other brokers put together.



A good read.

[luminoso] 07/11/2012 21:34

thanks for the note links, guys. nice finish in the end over the pond.

[madmix] 07/11/2012 19:32

Log,

Try this :

[loglorry1] 07/11/2012 19:14

rivaldo thanks for the notes but you pasted the Credit Suiss one twice not the Macquarie do you have their note too?

Cheers

Log

[rivaldo] 07/11/2012 18:57

New notes from...

Canaccord with a $25 target price:



Credit Suisse with $26 - a much better note than Canaccord's imo:



And Macquarie with $25.50:

[par555] 07/11/2012 16:10

Buys now outnumbering sales in Canada. Trading @ 20.95-20.97 equiv to 1320p

[luminoso] 07/11/2012 14:49

tanking Dow and S&P holding back canucks a bit ?

[scottishfield] 07/11/2012 14:33

Yes, our lse chart is certainly very alien looking to what we are used to!. Should be interesting to watch from here on in.

[dukedosh] 07/11/2012 14:32

CEN opens higher currently C$20.60-20.96. volatile trading.

[melody9999] 07/11/2012 14:30

tommy - I think if you are in the market, you know who is 'in play'.

[dukedosh] 07/11/2012 14:16

CEN Trading halt has been lifted.



Investment Industry Regulatory Organization of Canada (IIROC)
November 07, 2012 08:39 ET
IIROC; Resumption; Coastal Energy Company
TORONTO, ONTARIO--(Marketwire - Nov. 7, 2012) - Trading resumes in / Reprise des négociations pour :
Company / Société : Coastal Energy Company
TSX Symbol / Symbole TSX : CEN (all issues)
Resumption / Reprise : 8:45 AM ET/ 08 h 45 (HE)
Contact Information
IIROC Inquiries
1-877-442-4322 (Option 3)