Faroe Petroleum Share Discussion Threads

[redartbmud] 04/1/2019 17:04

bh

If they don't vote the shares they don't count towards the 50% + 1 share, of the enlarged share capital, required to get DNO over the line.

[bountyhunter] 04/1/2019 16:53

In the case of IAE the bid did result in options vesting, but directors may not be happy at all with their options vesting at 152 when they clearly have confidence that the future price will be significantly higher.

[redartbmud] 04/1/2019 16:49

I am not going to trawl through the accounts in detail, but this is the extract from the company website:
Periodically the Company’s remuneration advisers assess the performance of the Company’s incentive awards to assess the maximum potential dilution that would result upon exercise. The most recent assessment was undertaken in October 2018 and taking into account performance-to-date, it was estimated that upon exercise 6.9% of the current issued share capital would be issued upon exercise. This percentage when taken together with those options that have been exercised in the previous 10 years (2.9%) totals 9.8% of the current issued share capital.

The key facts are:
1. Share options outstanding 6.9% of existing share capital. (=xxx shares)
2. Does a successful bid automatically trigger these options? If the bid fails then the options will not vest until the terms of the LTIP are met.
3. If so add to the existing shares in issue to arrive at total share capital.(Existing + xxx)
4. How many shares have been voted in favour of the bid?
5. What percentage of total share capital (In 3 above) does this represent?
6. If 50% + 1 share then DNO wins.

Simples - Point 2 is key, but I am not really bothered about trawling through the Directors Remuneration Report for the small print to determine if the shares vest.
If the Directors, or any other shareholder does not vote in favour then they have voted against by default.

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[jasper2712] 04/1/2019 16:48

Why sell out now when they had the chance before the 2nd Jan?

[bountyhunter] 04/1/2019 16:31

Volume quite high that's a lot of it was pi's

[fntc] 04/1/2019 16:27

If it is not retail or just trading for pennies, someone has to disclose tonight or Monday. If not, noone with more than 1% is buying.

[oto1] 04/1/2019 16:23

Blackrock is listed at Faroe investor page with 31,9 mill shares.
So they are definately reducing.

Instos?
Well, I haven't seen one proper buy rns yet, and find that strange.
I doubt new instos are suddenly popping up buying above bid price when existing major owners are selling.

[thegreatgeraldo] 04/1/2019 16:23

Aye, those 6 and 7 figure trades look like retail punters....

[fntc] 04/1/2019 16:20

Anyone holding more than 1% have to disclose all buys and sells daily now during the bid sitation, and there have been no large buys disclosed lately that I have seen, so it suggest retail investors are the ones buying above the bid price. Either that or it is daytrading by someone with less than 1% total.

[thegreatgeraldo] 04/1/2019 16:15

Presumably instos buying in anticipation of a higher offer

[thedudie] 04/1/2019 16:15

After about a month of knowing the bid level approximately 13% out of an available 71% of shares were tendered. The other 58% decided against.... ie that is called a majority :)

Blackrock sold some shares AT 1.52 and the rest at ABOVE 1.52.
So some of these shares MAY have gone to DNO but the others didn't.
We will see what they do next.

Someone is buying at above 1.52 that isn't going to accept 1.52!

[bountyhunter] 04/1/2019 16:11

Even better.
IIs I would have thought, but maybe a few retail.

[oto1] 04/1/2019 16:10

Dno has to inform about all their share purchases.
I just wonder who is buing above 152?
Retail?

[bountyhunter] 04/1/2019 16:08

If DNO even got to 31% they would have to say straight away. As for the acceptances I can't see any reason for that 13% to rise while the market price exceeds the derisory bid price.

[oto1] 04/1/2019 16:06

Yhedudie

You don't know what the majority wants.
Neither does the board.
Dno has acceptance and shares for close to 44%.
Blackrock, who owned 7% sold shares yesterday below 152.

So for me it appears that they are also happy with 152, and will reduce what they can above.
So look out for new sales in tomorrows rns.

[fntc] 04/1/2019 16:05

Depends how many shares you have. Like I said, BlackRock has started to offload shares at 152p in the market. Would they do that if they expect the bid to be increased by alot? Also, do you think the price would stay above 152 if they were to sell all their 25 million shares in the market?

[bountyhunter] 04/1/2019 16:03

TD, that won't happen while the price is above 152 in the market anyway since why would anyone pledge acceptance of 152 at some possible future date when they can sell higher in the market now? I can't see DNO going above their 13% acceptances while the market price is above 152p pricing in a higher offer.

[fntc] 04/1/2019 16:02

Do you honestly expect DNO to go away? Og go down to 30.6% which they have now without bid shares, and stay there and let the board run the company? That ship has sailed as soon as they started the war between them. The only question now, in my mind is when DNO takes over control, and how big of a percentage they end up with, and at what price, 152p or slightly more. But time will tell.

[thedudie] 04/1/2019 16:00

The majority (<-------this) don't want to sell at 1.52. The board have a duty to listen to the majority of their shareholders!
If this "majority" changes their mind and becomes a minority then it doesn't matter what the board think.

[bountyhunter] 04/1/2019 15:56

The Faroe board understandably don't want to sell a decent company down the river for an opportunistic and derisory bid. If it was a decent offer at £2+ then maybe DNO would stand a chance of pursuading the board and/or IIs otherwise. With the oil price rising from the lows DNOs options are reducing day by day.

[fntc] 04/1/2019 15:56

The only legalized theft would be when they get 90% and the remaining 10% are required to sell. Before that it is supply and demand, and everyone is free to buy, sell or hold as they choose.

[oto1] 04/1/2019 15:50

Thedudie

This is only a hostile bid due to the fact that Faroe board are not listening to their by far biggest owner.
It is the shareholders who own the company, not the board.

The thieves here are those who grant themselves shares at no cost.
DNO has paid for their ownership..

If You don't want to sell, then don't sell.
But You should look after Your money, because no one else will.

The Faroe board want as high price as possible, that will make them richer.
They know all too well by now that it is only a matter of time before most of them are reading job ads.

[fntc] 04/1/2019 15:38

Blackrock just flagged that they sold over 2 million shares yesterday, most of it around 152p. Largest shareholder after DNO.

[thedudie] 04/1/2019 15:24

You have got to remember this is a hostile bid. DNO are wanting to take assets away from holders at a price that the majority of holders don't want to accept. A sort of legalised theft.
Nothing stiffens resolve like a dose of outrage.