Fortune Oil Share Discussion Threads

[via con] 18/12/2014 09:33

Well this announcement is far from being a surprise to me. Nevertheless what I am surprised about is the fact that it isn´t a low ball priced buy out, should we get the extra 5p, making the deal at 10p plus 5p a decent price for us long suffering shareholders.

Should this 10p plus 5p come to pass, then none of us should complain. And let´s not forget the bribe divi we recieved, making it ~17p in total.

DC seems to have done the best for him (of course) and his shareholders. He truely is an honourable man after all.

So all we can do now, as per usual, is sit tight, fingers crossed and wait until March when the scheme becomes effective.

Congrats to all (stale) LTH, it seems the best outcome for all concerned

[philo124] 18/12/2014 09:18

Well, a happy xmas for some.

[gwatson56] 18/12/2014 08:54

So 10p now with up to 5p on top once the assets are disposed of..... the old motto 'when in doubt do nowt' springs to mind... Time will tell on this one.

[american idiot] 18/12/2014 08:52

for each Fortune Oil Share:

10 pence in cash; and

a contingent entitlement to a further 5 pence in cash or Loan Note(s) by way of a contingent value right (a CVR)

Pursuant to the terms of the Acquisition, holders of Scheme Shares on the register of members of Fortune Oil at the Scheme Record Time (other than Restricted Overseas Shareholders) will receive one CVR for each Scheme Share that they hold. The CVR is intended to enable Scheme Shareholders (other than Restricted Overseas Shareholders) to share in the proceeds of any sale by the Fortune Oil Group and China Gas Group of a material proportion of their current holding of China Gas Holdings Shares within 12 months of the Effective Date, if certain conditions and thresholds are met. Each CVR will provide Scheme Shareholders (other than Restricted Overseas Shareholders) with a contingent right to receive 5 pence in either cash (subject to any applicable deductions or withholdings) or, if they so elect, Loan Note(s) (subject to applicable securities laws), in each case subject to and in accordance with the terms and conditions of the CVR Deed Poll. The CVRs are complex instruments and a number of factors will determine whether any amount will actually be paid to Scheme Shareholders (other than Restricted Overseas Shareholders) by way of the CVRs. No interest is payable in respect of the CVRs or the Loan Notes. Further details in respect of the CVRs will be contained in the Scheme Document.

................

So if they decided to sell on a material proportion (by either Fortune Oil Group or China Gas Group) of their current holding of China Gas Holdings Shares within 12 months of the effective date then we will get an additional 5p per share.

Nothing at all to stop them selling on month 13 though and we get nothing !

[tel5] 18/12/2014 08:47

would we still retain an holding in cgh with a dividend or not, need Allendale to get to the bottom of it as seems that they are buying us out cheaply to me but after the share price been at this low level was always on the cards as as been stated on this board

[american idiot] 18/12/2014 08:45

This 'bid' barely reflects current asset value.

What about the future growth in China Gas ?

We shareholders will completely miss out on the upside there.

[american idiot] 18/12/2014 08:41

The problem is they already have the necessary acceptance to push the deal through as they already own 56%+ of FTO.

Its a done deal. For anybody who bought above 10p like myself we're out of pocket :-(

[gwatson56] 18/12/2014 08:38

hmmm.... Cheeky offer Alan et al any thoughts ?.....

[younasm] 18/12/2014 08:29

CVR 5p looks interesting but not sure if that will be paid in 12 months

[exel] 18/12/2014 08:29

there is some form of carry on top of 10p, but it does not feel that 'generous'. will have to study, ex

[american idiot] 18/12/2014 08:27

Looks like a done deal at 10p so anything less than 10p to buy is a winner ?

[younasm] 18/12/2014 08:23

Too cheap - very deliberate

[muffster] 18/12/2014 08:18

Taken out cheaply

[american idiot] 18/12/2014 08:10

10p bid for FTO !

[gwatson56] 16/12/2014 20:38

News from CGH



BEIJING, PEOPLE’S REPUBLIC OF CHINA – The Asian Development Bank (ADB) has signed loans of up to $450 million equivalent to help the People’s Republic of China (PRC) scale up its use of natural gas for transport to curb fast-rising emissions from automobiles and river freight.

“Traffic volumes have been rising fast in the PRC, resulting in air pollution problems not just here but also in other parts of Asia,” said Hisaka Kimura, Head of Private Sector Infrastructure Finance, East Asia Unit, in ADB’s Private Sector Operations Department. “Helping motor vehicles, as well as vessels that ply inland waterways, switch from diesel to natural gas will mitigate air pollution, fine particulate matter [PM2.5] in particular.”

The ADB loans will be extended to China Gas Holdings Ltd. to build and operate up to 600 compressed natural gas (CNG) and 200 liquefied natural gas (LNG) refueling stations along major land transport corridors, and a further 20 LNG filling stations for river vessels by 2018.

CNG is ideal for short-haul travel while LNG is more efficient for heavy duty long-distance highway and inland waterways networks. Further, the PRC has the world’s largest inland waterway transport network, which represents great potential for further greening transportation, using LNG.

[johnives] 13/12/2014 10:04

Is any one able to produce a summary of what is going on here and why? I would like to know what our assets are and where does CGG fit into it all. If money was borrowed to fund the buying into CGH how much was is it and how is it being paid back and does this include Mr Liu’s share. The indication seems to be that CGH dividends are being used for this as opposed to going towards any shareholder dividends. If so for how long
While we can only trust the BOD motives I would also like to know how it will be possible for the share price to rise with a Free Float of just 4%. It seems the board has two choices i.e. to go private as cheaply as possible or introduce more shares through a rights issue and hence increase the free float.
All of the above seems abnormal to me but I suppose it’s just Chinese shares for you !

[alanadale] 05/12/2014 17:57

Tel. We have always been dependent on Mr Liu as captain of the good ship China Gas Holdings for our wellbeing. The CGG dimension is just another short term complication.

But we do need clarity on CGG’s debt service and how it will be wound down, and that remaining dividend will be disbursed. I can not see that that will not be the case.

I sensed a general frustration that it has taken longer for things to come right –the negotiations on the new Maoming venture, for instance – but that is doing business in China. I’m sure the company is worth far more than the current valuation but how much is still unclear. Certainly realising a NAV of 35p a share is well off the mark as we are locked into an arrangement with Mr Liu that precludes that – at least for roughly half of our earnings. Don’t forget we own 184m CGH shares outright and we have promising stakes in Maoming and Bluesky.

To conclude I guess the shares will sustain a valuation at least twice their current level but the more stratospheric valuations are off the mark.

[spool] 05/12/2014 16:50

Thanks Alan, surprising that Frank should be so....well....frank, it explains why institutions etc are going to remain exceedingly cautious as we are totally dependent on Mr Liu acting in the best intrests of us, the minority shareholders, of a Co in which he has no direct interest. The waters are going to remain muddy until we get clarity on future dividend yield, all blindingly obvious I know but we have to remain hopefull that at these levels the only way is up provided CGH doesn't hit the rocks.
Regards, spool

[tel5] 05/12/2014 12:52

thanks Alan for that very informative and seems like we are not in control of our destiny but depending on others and on the progress of cgh in particular. Will wait until finals and see what happens .

[pieball] 05/12/2014 12:23

Thanks Alan, so in summary do you feel more or less confident in your holding following that conversation, did you get the impression that he has faith this will come good?

[tel5] 02/12/2014 11:57

lets hope its for us then

[gwatson56] 01/12/2014 22:34

Just had a look at Beijing Enterprise Holdings latest report for end June. It appears that they have over 13 billion HKD in cash. Bit more than 152 Million that FTO has. BEH now have an increased stake in CGH once the latest deal goes through, and with all this cash at hand, it make me wonder what the next move will be.

[younasm] 01/12/2014 22:05

Tel5 - give it a chance, you might see another 25% drop, but that's only another 2p.Slow death - I am just keeping these - too stubborn to sell at these low prices. These are getting closer to zero........