Diversified Energy Share Discussion Threads

[kaos3] 15/2/2024 08:07

Each seller has a choice now. Now there are 2 markets. One market more. Which pays 5 pc more

[stevensupertrader] 15/2/2024 08:06

Option 2 : Buying the shares from you without the 3rd. Qtr div or with the div?
Still confusing and unclear to many

[nigelpm] 15/2/2024 08:05

No - they buy directly from you - not in the market.

[kaos3] 15/2/2024 08:03

Effect - they compete with shorters to buy big scale.
Shorters got real sized competitor buyer. Shorters will re considwr strategy.

And they offer always 5 pc nore. Lol

[nigelpm] 15/2/2024 08:00

It's not really a "development". They are just saying either:

1) Have your dividend

2) Have a 5% premium on your shares if we buy from you.


Not entirely sure what happens if a large number of holders opted for 2) though.

[meanreverter] 15/2/2024 08:00

As a first impression, it seems that shareholders are being offered a choice of two options:

(1) Do nothing and get the dividend as usual.
(2) Sell shares back to the company at a 5% premium.

Rationally, the choice should be determined by the tax rate you pay on DEC dividends. This comprises US dividend withholding tax at the rate of 0%, 15%, or 30%, depending on how the shares are held, and UK dividend income tax if the shares are held directly by a UK resident, depending on their individual tax assessment.

For most people, including someone holding DEC shares in an ISA with a non-bank UK provider, it makes sense to do nothing: accept the dividend minus 15% withholding tax.

For those who are uncomfortable with their holding of DEC shares, the offer might provide a convenient exit point.

[croasdalelfc] 15/2/2024 08:00

Accounting rules - unfortunately

[stevensupertrader] 15/2/2024 08:00

The 2nd opinion Ie Tender Offer is a long winded way of explaining ! Mamy cannot fully grab what DEC is saying - Sorry Guys sad 😞

[tsmith2] 15/2/2024 07:57

good move by co

[blue square] 15/2/2024 07:55

This all obscures they bought
back another 60 000 shares
yesterday

[monte1] 15/2/2024 07:54

. . . plus an extra 5% on the price.

[bluemango] 15/2/2024 07:52

Edit - thanks LLB, seen your edit.

So - they are offering to buy shares from you at an equivalent value of the dividend you would have received. In effect it's a buyback but potentially at a much larger scale, offering to buyback shares directly from shareholders instead of them receiving a cash dividend, if they choose that option. A rather neat way of doing a potentially significant buyback, saving the company future dividend payments on those purchased shares and therefore concentrating the payout on the remaining shares.

I doubt I'll be opting for this as I'd rather have the shares, both for capital appreciation from here, and for future income, but it's a neat idea that could potentially greatly reduce their future outgoings.

[bulltradept] 15/2/2024 07:50

Not sure I like this development....

[kaos3] 15/2/2024 07:44

Scarry. Dec makes all to my tastes. Which never happens.

[grahamg8] 15/2/2024 07:38

A clever way to get their hands on a lot of shares and avoid paying the dividend on them and avoid driving up the share price in an otherwise thin market. We get to avoid US tax deduction but on the downside don't know what the share price will be on 20-27 March. Rusty throws another curve ball.

[this_is_me] 15/2/2024 07:33

That looks like a good idea. The more buybacks there are at the current share price the better.

Shorting is likely to have been only a very small part of the share price fall. There is no evidence for vast amounts of shares having been shorted. Shorting means finding a large shareholder willing to lend shares (for a fee) and then selling them in the market in the hope of buying them back cheaper.

[laurence llewelyn binliner] 15/2/2024 07:26

[edited], interesting new dividend payment option at 105% cost, so the company will use the dividend payout cash to buyback more shares..

[saltaire111] 15/2/2024 07:21

They’re not getting their hands on any of my shares at this price!

[leoneobull] 15/2/2024 07:03

Rns! Tender offer

[leoneobull] 15/2/2024 06:25

A quick thought. Watching analysis of DEC's previous full year accounts they bizarrely included notional losses which weren't really losses at all..e.g. due to difference between market price and their hedged price. Presumably now that hedging is delivering significantly higher profits than the HH price, DEC will swing back to major profit but use those tax losses?

[neilyb675] 15/2/2024 05:51

#remove youtube videos#

[neilyb675] 15/2/2024 05:51

#remove youtube videos#