Diversified Energy Share Discussion Threads

[blue square] 15/2/2024 08:33

What a Mess, if we had just
the RNS with 60 000 buyback
the share would of gone up.
All they have done is sown
confusion.

[tag57] 15/2/2024 08:32

Meanreverter - adding to your point, this could also be of interest to anyone holding shares in a non pension/Isa if paying tax.
Gets 5% share premium
Saves 15/30% withholding tax
Tax in divi income at potentially 20/40% tax.
On second thoughts I will be taking a look at this for my holding on my S&S accounts with HL. As could be quite attractive to sell and repurchase.

[blue square] 15/2/2024 08:30

They should of stuck to
buy backs, shares bought
back saved the dividend payout,
or have they run out of money
for buy backs?

[bountyhunter] 15/2/2024 08:22

I'm still trying to get my head around this.

1) Obviously if you do nothing you get the divi minus applicable withholding tax so 85% of the divi for most non sipp UK investors.

2) If you go for the tender offer you get a 5% premium on your sale so receive 105% for the shares tendered? How does that work as you would have the 5% bonus on your sale but have lost the dividend and the shares tendered? Surely I must be missing something! It may depend on the prevailing share price at the time of the tender offer.

[blue square] 15/2/2024 08:22

No one can understand the RNS
which does not help

[blue square] 15/2/2024 08:20

For something meant to boost
the share price, its had the
opposite effect,
I will hit my stop loss at
this rate.

[croasdalelfc] 15/2/2024 08:17

The total amount of the tender offer and divi is $42m ie the same as the full dividend.So no extra funds allocated for the tender offer. If you elect to waiver say 50% of your divi then you probably won't get full allocation in tender offer - that's how I see it

[bountyhunter] 15/2/2024 08:15

Hi Leon, re #1052 inclusion of notional "hedging losses" is normal practice (e.g. Serica as well) so not bizarre just misleading at first sight. You are right that when the hedged price is greater than spot as now the difference will look a lot more favourable in the results.

[kaos3] 15/2/2024 08:12

Market does not own shares to sell. Only willing shareholders do.

[laurence llewelyn binliner] 15/2/2024 08:10

#Lab305, so in effect this is a USD42M addition option to the buyback but direct from shareholders at a premium and not from the main market, you have been vocal on many times, ref more buybacks so why would this not appease..? :o)

[stevensupertrader] 15/2/2024 08:08

If opted for option 2 - os it all your DEC shareholdings or just shareholders can decide ? - so many questions still not mention . Option 1 is cleared but not Option 2 - vague

[tag57] 15/2/2024 08:08

Hopefully the tender will be fully taken up and take out ~10% of market cap.
I will be keeping mine

[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.