Faroe Petroleum Share Discussion Threads

[thegreatgeraldo] 18/12/2018 15:03

Wbodger
18 Dec '18 - 14:49 - 1666 of 1668
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How long for, tgg? Indefinite?

..They can hold any shares they buy (up to 152p) as long as they want. Remember, 30% is the threshold which triggers the need to make a bid, which they've done.

[wbodger] 18/12/2018 14:57

Going back to state the bleedin' obvious and FNTC's point, the 50% +1 is about control of the Board, so that they can stop unwelcome dilution, or M&A.

[bountyhunter] 18/12/2018 14:50

That's not correct afaik.

[wbodger] 18/12/2018 14:49

How long for, tgg? Indefinite?

[thegreatgeraldo] 18/12/2018 14:44

Sorry, AIUI, DNO can buy as many shares as they like up to 152p..... if the bid were to lapse, no need to divest any of them

[bountyhunter] 18/12/2018 14:39

or they have to raise the offer until it is acceptable

[fntc] 18/12/2018 14:30

Dno has set an acceptance criteria of 57.5% plus one share (50% after max dilution), so they can own over 50% at least. If they don’t get that high acceptance they don’t take any new shares and stay at 28,xx%. And price falls well below 152p, i would assume.

[wbodger] 18/12/2018 14:21

vikingbhoy, I can't quote the rules for you, but I understand 30% is effective control in UK rules - it's a blocking stake and therefore affects the value of other shareholders' investments. Eg: knowing that RAK can block any moves on DNO affects other Oslo Bors shareholders of DNO shares. Oslo has rules, they are just different from UK (I seem to remember Aker had 49% of Detnor before the AkerBP deal).

I really should back out of this. I'm very confident of the 30% in UK but someone else will have to post the legalese, and the procedures. In other situations where a bid has fallen short of the figure allowing them to take it private the bid is usually extended, and sometimes raised, and the new price paid to all if an upped bid then succeeds. But if it fails they eventually have to divest and not hang on to - say - 40% indefinitely.

oto, yes, afaiui that is usually the point about a bid going 'Unconditional'. The agreement to take a large block of shares at an agreed price is related to the bid succeeding.

[oto1] 18/12/2018 13:38

Wbodger: DNO has a standing GM resolution allowing them to buy up to 10% of own shares. So they can start anytime they wish. And in my honest opinion a much cheaper alternative than Faroe at 152.

The one good reason DNO wants faroe is to get production / assets outside of kurdistan in order to diversify risk. That is definately a valid reason, but should not come at any cost.

DNO/Faroe is a good match, at least for institutional owners. Maybe not so for retail, as stock market integration between UK and Norway is terrible. It's far easier for us Norwegians to buy shares in USA or Canada than in UK. And it woild assume this to go both ways.

Regarding the need to get below 30%, that is new to me. If so DNO would also struggle to get rid of it's shares at a reasonable price. If this is indeed a rule they may choose to not accept any shares if they don't get above 57%.
If DNO doesen't come in a position where they can block future dilution, I will surely hope they will find a buyer for all their shares.

Oli12: DNO bought close to 1 mill shares yesterday. See Faroe news section.

bountyhunter: Yes. That is why DNO will not buy any shares above 152p. The one thing that puzzles me is that a lot of shares is trading above 152p, but hardly no buy disclorures, mostly sell. So who is buying? At least not one buyer as it should be a disclosure.
If it's retail then I can only wish it to end well. The upside in my opinion is limited, and the short term downside is quite substantial given the present market conditions.

[bountyhunter] 18/12/2018 13:20

Incidentally if DNO or their consorts buy any over 152p they have to immediately raise their bid to the highest price paid.

[vikingbhoy] 18/12/2018 13:13

Wbodger, I think you're wrong about that 30% rule. If they go above 30% they have to launch a mandatory offer, but I've never heard of any rule restricting ownership of more than 30%. Do you have a source for that?

[vikingbhoy] 18/12/2018 13:13

Wbodger, I think you're wrong about that 30% rule. If they go above 30% they have to launch a mandatory offer, but I've never heard of any rule restricting ownership of more than 30%. Do you have a source for that?

[wbodger] 18/12/2018 12:39

FNTC: they want Faroe for corporate strategic reasons, they said so. They might raise the offer slightly to get over the line (it did trade in the range £1.57-£1.58 for ten days after the Offer was tabled), but the sort of numbers mooted here would be a step-change.

Oli: they only have room for 1.78% more before hitting 30%, unless the Board options diluting us all gives them more room.

Oto: they can't hang onto more than 30% in UK, they would be given time but would have to divest down below 30% if the company is listed.

[oli12] 18/12/2018 12:20

Have DNO bought some more in that latest RNS price 151p ish.

[fntc] 18/12/2018 12:03

They might pull out if they don't get a controlling stake at 152. I don't see a reason to raise the bid in this oil price/stock crash environment. Lots of other cheap companies for them to look at. And also buyback of their own shares would make more sense at current levels.

[rogerlin] 18/12/2018 12:02

It should be said that over the years Faroe has delivered an active drilling programme, some successes but sadly no elephants. But shareholders had the chance of an elephant, you don't get a bet for nothing.

I made a list of them a while back, for interest between 2010 and 2014 there was Fogelberg, Maria, Anne-Marie, Lagavulin, Fulla, Butch, Kalvklumpen, T.Rex, Clapton, Cooper, Rodriguez, Spaniards, North Uist, Darwin, Snilehorn, Novus and Pil, and of course several since then including Kvalross. The Pil follow up (Boomerang etc) looked really promising but disappointed and any of the Barents drills could have been big.

[wbodger] 18/12/2018 11:55

Oto1, #1646' DNO's last GM was on 31/5/17. You don't really want to wait that long? Are they allowed to put in a Tender on their own shares - otherwise I think they might feel they would just be putting Peshkabir money straight into speculators pckets. (I see they have debts, that might be smarter use, in case 'politics' interrupts Peshkabir.)

They will pay what they have to pay for Faroe. The market has helped them, so I find it very unlikely they would pull out.

[oli12] 18/12/2018 11:43

Your insight as a DNO shareholder is appreciated Oto, please keep posting your views.

[oto1] 18/12/2018 10:09

Without DNO buying the 28% stake in the first move with a 205 premium, and the offer with another 25% premium, I believe the share price of Faroe today would be around 100p.

And if DNO drops the offer the share price will drop rapidly 20-40%.

And then all the 200p dreamers will regret they didn't sell and start hoping of 130p instead.

I REALLY hope DNO buys the shares offered, drops the bid, and spend time on this takeover.

[ed 123] 18/12/2018 09:19

The fall in the oil price may make easier to agree a deal? Some institutions had been talking of over £2 per share in value. Maybe that has come down? DNO will presumably be longer term in their perspective. Possibly a further 10p onto this 152p offer could start some institutional holders moving across?

Whatever, we creep closer to decision day.

[oli12] 18/12/2018 08:42

I wonder what the share price would be without the bid in play? The swap deal with Equinor has added value in the short term however the oil price weaknesses has caused many Oilers to drop dramatically.

[thegreatgeraldo] 17/12/2018 16:17

FNTC
17 Dec '18 - 15:56 - 1647 of 1647
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Quite a few shares traded below the offer price today. Someone are in a hurry to sell for some reason.

....Not everybody's focused on what FPM is worth & the gap between that & the current value. An insti may have decided to cut its exposure to the resource/oil sector, maybe cutting back UK exposure. The offer provides the opp to shift a fairly large position without moving the share price against you.

[fntc] 17/12/2018 15:56

Quite a few shares traded below the offer price today. Someone are in a hurry to sell for some reason.

[thedudie] 17/12/2018 14:41

Interesting timing on Brasse East - Have read the result should take 38 days (min) which from 21st November is towards the end of next week or maybe the week after unless of course they have had any problems / re-spud etc.
Pretty close to the closing of the offer period....

td