Hunting Share Discussion Threads

[marvelman] 23/12/2008 08:35

L & G quite obviously still pulling this down as they are on other companies I have seen

[huggybear1954] 20/12/2008 15:15

Very disappointed to see the shares languishing at their current level, given the deal they've just pulled off. The weakening oil price is not helping and neither are L&G!
At this price, they could easily be snapped up IMHO.

[dextroisomerism] 18/12/2008 19:31

I think they will bid for Lamprell

[chris1604] 17/12/2008 10:43

Jodi

I share your disappointment with the reaction of the share price to the disposal, certainly I was hoping for a rise to £5.00. Htg appears to have three options in using the proceeds.

Acquisitions

Some return to the Shareholders

Reduction of debt

The temptation of acquiring undervalued assets may be irresistable, but I would prefer a reduction of debt. This will protect the share price in 2009, targets that appear cheap now will be even cheaper still in a years time.I think low geared companys will outperform next year. As a lth here, I hope the Board use these proceeds wisely.

Whatever decision is taken, I am confident that we will receive a healthy increase in our dividend next year.

IMHO etc

[jodi17qad] 16/12/2008 08:30

I would expect this to move higher over the next few days.

Even in more "normal" times, I have noticed that the market is sometimes surprisingly slow to price in good (and bad) news. After an initial rise, there may be some profit taking before the advance resumes as brokers catch on and revise their profit estimates and move their clients in.

With the prospect that oil supplies will be cut, there is every reason to suppose that this will help.

On the other hand, these are not "normal" times.....

[pyman] 15/12/2008 16:57

agreed. Must be some selling going on.

[marvelman] 15/12/2008 15:11

Agree Mercury. Very surprised to see it still at below £5.50 but have the feeling that L & G are using this news to unload some more. We may well see an RNS confirming this later...does not make sense otherwise.

[mercury123] 15/12/2008 15:03

This share was around 8 in September 08 and has fallen since partly due to market conditions but more to do with uncertainty over whether this sale would complete. I am amazed it isn't much higher today than it is but when the good news really sinks in it will go much further on - so I'm hanging on in there.

[pyman] 15/12/2008 14:45

nice volume

[pyman] 15/12/2008 10:59

6-50 target put on HTG by Morris of Evolution.Upbeat but Conservative with valuation due to the difficult climate. NOted bid potential now increased.

[pyman] 15/12/2008 09:29

fill yer boots!

[dextroisomerism] 15/12/2008 09:22

700 before long

[marvelman] 15/12/2008 08:37

Well what good timing for the HTG management. Sold at the top and now can buy at the bottom..one to hold.

[deckergj] 15/12/2008 08:17

you sure did

[mercury123] 15/12/2008 08:11

Didn't we tell you so!!!

[old giggleswickian] 14/12/2008 13:01

So, allowing for Can$215m of net debt Hunting should receive £505m and retain a Can$100m warrant paying 12%. This will reduce Hunting's overall debts to £30m-£35m. The Market cap of HTG at 7:59am Monday is £542m, The market cap of HTG at 8:01am Monday is............ hopefully a little higher. Bonuses all round at L&G I don't doubt!

Ian.

[concrete3] 14/12/2008 12:12

Yahoo finance reports the deal as follows:

The total consideration for Gibson is CAN$1,258 million (approximately £617 million) of which CAN$1,158 million (approximately £568 million) was paid in cash on Completion. Under the original terms of the transaction as announced to shareholders on 6 August 2008, the total consideration was payable in cash on Completion. To assist the Purchaser with its financing, Hunting has agreed to defer payment of CAN$100 million (approximately £49 million) of the consideration through the receipt of a warrant (the "Warrant") entitling Hunting to CAN$100 million Preferred Equity Shares ("Preferred Equity") in the parent company of the Purchaser on exercise of the Warrant. The Preferred Equity will carry an annual dividend which is cumulative and compounding at a rate of 12%. After two years the Preferred Equity automatically converts into a separate class of common shares. The value of the common shares will equal CAN$100 million plus the amount of any accrued but unpaid dividends on the Preferred Equity at the date of conversion. The Purchaser (or an affiliate of the Purchaser) may purchase the Warrant from Hunting for cash plus a sum equal to any cumulative dividends on the Preferred Equity from the date that the Warrant has been issued.

[huggybear1954] 14/12/2008 11:17

One thing I find odd about this announcement is that the sterling values are still being quoted at old exchange rates. I know the deal was negotiated in CAN$, as a spokesman for the company confirmed this to me, so I think the whole Gibson sale is worth some £60m more than is quoted in the announcement.

[blackm0nday] 13/12/2008 22:10

great news
gonna fly monday,and so it should.

[robson1974] 13/12/2008 21:28

Friday, Hunting PLC (HTG.L: News ) announced that it has completed the disposal of Gibson Energy Holdings Inc. to Gibson Acquisition ULC on December 12.

[robson1974] 13/12/2008 21:27

Rumour of the day

Hunting, the oil services group, fell 14p to 411p on fears that the £626 million sale of Gibson Energy to Riverstone, the private equity firm advised by Lord Browne of Madingley, former chief executive of BP, may collapse because of lower oil prices. Such concerns are thought to be wide of the mark, with both sides hoping to sign this weekend.




Market Cap : £540m ish
Debt : £140m ish
Total Company Value : £680m

and they just sold Gibson for £626m !

so Hunting Energy is being valued at c.£50m i.e. 1x PE or 0.7x EBITDA

the stock will probably be up 25% at least on Monday

[kunick] 13/12/2008 20:23

Business wire.12th dec 16.24pm.Sale of gibson energy has gone ahead.Check recent news items.This is great news for us all.