Faroe Petroleum Share Discussion Threads

[bomfin] 03/1/2019 10:43

Many many times big fields become bigger. More than evens chance imho. When Buzzard was announced it was 8O million barrels. When Johan Sverdrup was discovered it was 2OO million barrels. They are now 1 billion and 3 billion barrels respectively. Fenja proved disappointing. That is one that went the other direction. Holding for IrisHades appraisal could double the share price. imho dyor

[hashertu] 03/1/2019 10:31

On a matter of process, if DNO were to buy shares in the open market at more than 152.0p, when would they have to announce that the offer price has been increased.

[bomfin] 03/1/2019 10:26

Nothing in share price for potential upside at IrisHades with 2 opportunities there.

[hashertu] 03/1/2019 10:25

If the offer lapses, there is no obligation to buy or sell the shares offered by acceptance (as I understand the rules)

"If the Offer lapses, it will cease to be capable of further acceptance. Faroe Shareholders who have accepted the Offer and DNO shall then cease to be bound by acceptances delivered on or before the date on which the Offer lapses."

Oto1. Yeah. Stinks, doesn't it.

[bountyhunter] 03/1/2019 10:16

And the irony of that is that any cancelled acceptance shares sold at 152+ would not be going to DNO!

[harry rags] 03/1/2019 10:14

Perhaps some who agreed to sell will now change their minds and opt no to sell. Why would you accept 152p when you can get more in the open market?

[bountyhunter] 03/1/2019 10:12

Much appreciated Red. I'll try to remember that post number 1940!

Again the market is saying that DNO will have to raise their offer to stand any chance. Also no hope of mopping up shares at <= 152 in the next 14 days if things stay like this! Wish I'd topped up earlier when I was thinking about it!

[redartbmud] 03/1/2019 10:10

7. DNO has set its Acceptance Condition at a shareholding of one share more than 57.5 percent of Faroe's issued share capital, representing more than 50 percent of Faroe's fully diluted share capital.

8. DNO notes that if its Offer lapses, it cannot make a new offer for another 12 months (subject to the exceptions in the Code) and there can be no assurances as to DNO's long-term ambitions. What it can make assurances about is that DNO will redouble efforts to achieve board representation for the owners of Faroe to ensure improvement of corporate governance practices, to ensure greater shareholder "say on pay", to ensure greater scrutiny and proper oversight of further dilutive actions, including generous options awards to directors, and to ensure implementation of a culture of shareholder value creation.

[thedudie] 03/1/2019 10:02

I think the management options if/when exercised means 57% now is equivalent to 50% fully diluted ... but someone may have a more informed view

[oto1] 03/1/2019 10:01

The dudie.
They have now already increased with 15% from 28,2 to 43,2.
And there will for sure be a gm shortly after bid expires.
Agenda will be replacing board members.

If absolutely everyone votes against dno, it would still require more than 86,4% shareholder representation to stop dno from exchanging some or all board members.
And in the unlikely situation that happens, dno has all the time in the world to make it happen.

[bountyhunter] 03/1/2019 09:59

Wasn't the true of percentage of available shares required 57% for some reason, perhaps someone can remind me what that was about to save me trawling back through hundreds of posts!?

[redartbmud] 03/1/2019 09:53

Alternatively, If they have c50%, bought at c 135p, increasing the offer will be relatively inexpensive in the scheme of things.
If they bought the remaining 50% @ 175p their average cost would be roughly 155p, based oto1's numbers.
Still cheap?

[thedudie] 03/1/2019 09:48

You are assuming people will change their minds for DNO to increase from 43% - people don't like doing that if nothing changes.
They can't get them in the market at the moment.

[oto1] 03/1/2019 09:42

The dudie.
I can never imagine dno upping the bid at this stage.
From their initial holding of 28,2%, they will now increase that with 15-20% at 152 or less.
No need for dno to pay more for that increase.
They will then hsve acquired close to 50% at an average price of around 135?
No need to ruin that as dno more or less has achieved what they wanted.

[vikingbhoy] 03/1/2019 09:40

It’s all proceeding as expected. At the end of the extension, DNO will raise their bid and make a final offer. Since they are now at 43% I would expect that offer to go through

[oto1] 03/1/2019 09:38

Hopeful: Yes, I am.
And Rakp shareholder.
And Faroe shareholder.
Still only posting the facts.

[thedudie] 03/1/2019 09:37

They may not get too many more .... If institutions didn't want 1.52 from the 12th December - 2nd Jan why would they suddenly want it now. Nothing has changed.

And if the price stays above 1.52 in the market DNO can't get any that way.

To win DNO need to add a chunk on the offer price.

[redartbmud] 03/1/2019 09:34

When a bidder obtains 30%, or more, of the target company's share price, it is obliged to 'bid for the whole share capital of that company' - it becomes a mandatory offer.
In all reality just a technical point in the process. They started with 28% and bits, so it was inevitable they would breach 30%+
The question is whether they want to stick at 43%, and maybe see the share price pull back if/when the bid fails. They would have to fund a holding that continues to be an expense (no dividend!) until they can sell (at a loss?) or bid again in 12 months time. DNO board must be under a bit of pressure now. Will they blink first?

[hopeful holder] 03/1/2019 09:34

I guess you are a DNO shareholder...

[oto1] 03/1/2019 09:32

Now that DNO has gone mandatory they will most likely get 45-50%, and they will keep them.
Which means that they most likely will get control, exchange board members, and make a new offer next year.

If that is going to be higher or lower no-one knows.

[hopeful holder] 03/1/2019 09:31

If they fail and walk away for 12 months, the ones price they would need to bod will e way on excess of today's offer.They need to put up or shut up

[bountyhunter] 03/1/2019 09:29

Yes quite right TD 'mandatory' in this context means DNO now have obligations, we don't!

[redartbmud] 03/1/2019 09:22

Ed

So far the major institutional investors appear to be sitting on their hands.
Maybe DNO needs to sweeten the pill, otherwise they may walk away empty handed, with a few too many shares, on their books, bought at 'too high a price for their comfort'.