Diversified Energy Share Discussion Threads

[bountyhunter] 11/10/2021 12:28

Yes, there has been no suggestion of delisting on LSE in the event of a US listing.

[aleman] 11/10/2021 12:26

14/7/21

Anything over $3.00, Diverse probably makes a lot of money.

My goal is to develop size and scale that puts us up in 2-3bln market range, which gives us the possibility to dual list in the US..

[johnhemming] 11/10/2021 12:06

I don't know, but I would assume that it should be possible given the priority to move from crest into an ADR. I have done a bit of searching on this and there are references to this process. It is, however, worth raising with the company.

[scrwal] 11/10/2021 12:02

If there was a US only listing I think there has to be a corporate action of some sort and not sell UK and buy US as that is unworkable because how do you retain the value of the UK to create a sale whilst having the US for an equivalent purchase.

[aleman] 11/10/2021 09:09

More background energy market news:





A winter storm is hitting the northwestern USA and spreading SE at the moment, too. Europe is predicted to turn cold next week.

[fardels bear] 11/10/2021 08:45

That would be very messy and have capital gains tax implications for more than a few I would've thought. Is the company not able just to do a corporate action and to convert UK shares to the new US shares?

[sunbed44] 11/10/2021 07:40

No you'd have to sell as UK held shares and buy back as international ones

[fardels bear] 11/10/2021 07:28

No, BH, it's not in the case of a dual listing but one of the options that Rusty propounded was for a US only listing. That's what I'm asking about.

[bountyhunter] 11/10/2021 07:22

I guess they would but I've heard no indication that the UK listing might be cancelled in the event of an additional listing in the US.

[fardels bear] 11/10/2021 07:10

So what happens if we already have shares from the UK listing and the company goes to a full US listing? What happens to the shares we own, do they get replaced by US shares?

[sunbed44] 11/10/2021 00:35

In effect, the 30% withholding tax only applies to dividends paid via CREST

[sunbed44] 11/10/2021 00:34

If we had a full US listing and you bought them as international shares, dividends would not be paid via CREST and therefore the 30% withholding tax would not be in place.

[fardels bear] 09/10/2021 17:29

Makes sense. Thanks.

[gary1966] 09/10/2021 17:21

FB, Given that for tax purposes we are already treated as a US company I would say the answer is, no change.

[fardels bear] 09/10/2021 16:37

How would a full US listing affect out tax position vis a vis the withholding tax?Question to somebody who knows, not some random, lately arrived prophet of doom..

[bountyhunter] 09/10/2021 16:31

Thanks RT, I appreciate you posting that. I guess the timing could be important if a US listing meant they could secure additional investment to fund a further aquisition. Just a thought. Also they may prefer to wait for some stabilisation in the gas price and or the start of a new US tax year.

[redtom1] 09/10/2021 14:42

bountyhunter,

Here is a recent response I had from the company on the US listing issue:
"We certainly appreciate and understand the sentiment that a US listing could better serve the company and its shareholders in regards to the market’s perception of the stock and accompanying share price performance. Relating to any potential change in the Company’s listing status – we are evaluating both a dual listing and a complete US listing, aiming for the arrangement that will provide the most value and return for our stakeholders while best positioning the Company for continued success. We are deliberately and diligently walking through this evaluation, engaging in recurring communications with our external advisors on the timing, type and effect of the US listing, and will make the final decision of the same as and when appropriate in due course."

[bountyhunter] 09/10/2021 11:49

LSE volumes for comparison with the almost negligible OTC volume...



No arbitrage opportunity there or change in the share price after the London close yesterday with 129p = 176c

[bountyhunter] 09/10/2021 11:42

chicken and egg at the moment then Gary ;)

Going forwards I can't see the BoE putting up interests rates by much or the Government would have difficulty in servicing their own debt not to mention the homeowner mortgage situation so we could well get to $2b MC simply by share price appreciation as has been suggested.

[bountyhunter] 09/10/2021 11:41

There is an OTC listing already but low volumes

[gary1966] 09/10/2021 11:26

Yes Rusty has said he wants it but only when the co has a market cap of $2bln hence the debate.

[bountyhunter] 09/10/2021 11:13

Which in theory would push the share price here up by around 50% 😀

Have we had any indication that they may be considering at a US listing? I can't recall anything off the top of my head.

[aleman] 09/10/2021 09:44

Market Cap is now $1.49bn. It will probably hit $2bn without any further fundraising/expansion if they announce a US listing since US shares trade on higher mutliples and US investors have far less choice of yield stocks and so would likely push the yield down to 6 or 7%.

[bountyhunter] 08/10/2021 17:07

posted yesterday by Plutonium

* It was unhedged, but they have now hedged 50% of current year production and will be hedging 50% of near term production by December.

* They are starting to hedge 2024 to lock in high prices