Hurricane Energy Share Discussion Threads

[enfranglais] 16/3/2023 14:38

Does this not need 75% approval, if so, they might have problems!!

[marmar80] 16/3/2023 14:34

Btw. https://oilprice.com/Energy/Crude-Oil/UK-Considers-Easing-Windfall-Tax-Pressure-On-Oil-And-Gas.html

[kooba] 16/3/2023 14:14

https://stream.brrmedia.co.uk/broadcast/64107f37f866e2102a4e9acf

[marmar80] 16/3/2023 13:38

"2 November 2022Hurricane Energy plcFormal Sale Process, Capital Return and Operational UpdateHurricane Energy plc ("Hurricane" or the "Company"), the UK based oil and gas company, announces that, following receipt of an unsolicited offer and after a period of engagement with the bidder (the "Bidder"), Hurricane has received an offer for the entire issued share capital of the Company at an indicative price of 7.7 pence per share in cash (the "Indicative Offer"). The Indicative Offer is at a premium of only 13% compared to the mid-market closing price of 6.8 pence per share on 1 November 2022. The directors of Hurricane (the "Board") have concluded that the Indicative Offer should not be recommended to shareholders.The Company is in a very strong financial and operational position. However, Crystal Amber Fund Limited, which holds 28.9 per cent. of the Company's shares and is the Company's largest shareholder, has indicated to the Board its desire to monetise the value of its shareholding"

[wbodger] 16/3/2023 13:33

re 57094, marmar, I see what you mean. But if the Board holds the vote for this offer early enough nearly 45% would be obliged to vote Yes. (Practically there wouldn't be another 45% to defeat it.)

[kooba] 16/3/2023 13:27

Well its not exactly straightforward..having been a Nomad myself in an earlier life i still had to read it a few times ..one of the more convoluted deals I've seen! Still would like to see how they are meant to get to maximum payout ..little detail.

[c2b] 16/3/2023 13:24

As I read it the field needs to produce over twice what it has already produced before anything will ever get paid out on the deferred units? So the maximum these shares are now worth is 6p.

[wbodger] 16/3/2023 13:22

Thanks for correcting my mistake on the April offload, I was confusing it with the February one. It looks like the Scheme Document will be a weighty tome when it comes out if it clearly lays out how HUR shareholders will benefit from DCUs instead of their simple rights and voting powers that we currently have.

[marmar80] 16/3/2023 12:45

Market cap now 143m ar 7.15p

[rahosi] 16/3/2023 12:37

I'm guessing that most of my (shrunken) ISA investment will be withdrawn from my ISA.

If so, doubly bad news.

I have asked the company what consideration was made for ISA investors.

[kooba] 16/3/2023 12:21

The firm cash upfront is 4.1p yep on scheme approval..3.32p dividend and .83p cash .But there is then a further dividend subject to same approval and the April offload of 1.87p . So unless it doesn't go through or the April offload cash receipt disappoints shareholders will get total 6.02p by end of May ..subject to shareholder approval and scheme becoming effective. If scheme doesn't go through I'm not sure anything is currently promised.Yes this is a full takeover taking the company private but they seem to be saying Hurricane will be kept as a vehicle to reverse assets into to benefit from the tax position as well as continuing to ring fence well 6 earnings. How they go about this and whether there is any dilution to the 17.5% carry ..no idea. I'm afraid how they get to a possible 12.5p maximum payout value is rather fluffy as yet. As said i can't see how they get there with just 17.5% of well 6 offload payments.

[noirua] 16/3/2023 12:13

Looks like a fair gamble at 7.25p paid in the market. Much of the cash returned with little left in for higher future payments.

[wbodger] 16/3/2023 12:02

The Firm Proceeds are only 4.1 pence a share (the cash offered plus proceeds from the April lifting which will be banked before the Effective Date).
For nearly 2 billion shares that's the £82.7 million. Other consideration is through the Units which could be worthless or worth up to 8.3 pence more according to them. They are giving a range of value, depending whether the DCUs ever yield another 8-odd pence. If they do, whoopee. I think not.

Answering my own question earlier, no, this doesn't give Prax Hurricane's listing. If it goes through Hurricane will become a subsidiary of Prax and continue as a private company controlled by them. Not sure what happens if HUR shareholders accept the capital return of their own money (4.1 pence a share) and remain shareholders of the division then controlled by Prax, with a reduced entitlement to the profits of that subsidiary through the convoluted DCUs. (We may find out the mechanism in the Scheme Document) but afaik they cannot compulsorily exchange HUR shareholder rights with a different structure of less than proportionate voting power. They cannot just change the voting power of shareholders however overwhelming is the wish of other shareholders to do so.

[kooba] 16/3/2023 11:55

The information on the first 'transaction' dividend and all other payments is that it is conditional on shareholder approval and the scheme of arrangement ie takeover becoming effective.So they will need to call a shareholder meeting which can't be done until April and then one has to wait for acceptances (or not!) for it to become effective..i doubt any money will be paid until May at earliest and that is only if the scheme becomes effective. Nothing current tax year then. But hopefully the company will give us expected timelines shortly."The board of Hurricane has declared a Special Dividend, the Transaction Dividend, of 3.32 pence per share (GBP66.1 million), conditional on (i) shareholder approval by way of ordinary resolution, the passing of such resolution being conditional on the passing of the Resolutions; and (ii) the Scheme becoming Effective. The Transaction Dividend will be paid to Hurricane Shareholders within 14 days of the Scheme becoming Effective."

[rahosi] 16/3/2023 11:19

The details of this acquisition are above my pay grade.

Does anybody know, going forward, what the implications are for HUR held in an ISA?

I'm trying to glean what the likely dividend dates might be in respect of this tax year. (Tax planning, not all my holdings are in an ISA).

[sensemun] 16/3/2023 11:18

[e-mail]
[e-mail],
[e-mail]
[e-mail]
[e-mail]
[e-mail]

Let them all know you will be voting against this shocking deal. I have.

[marmar80] 16/3/2023 11:14

I am so upset lads

[marmar80] 16/3/2023 11:12

What logic is behind this paragraph? In the event that only the Firm Proceeds are received by Hurricane Shareholders, the Acquisition values the entire issued ordinary share capital of Hurricane at approximately GBP82.7 million, a discount of approximately 39 per cent. to the Closing Price per Hurricane Share of 6.80 pence on 1 November 2022, being the last Business Day prior to the announcement of the FSP.

[marmar80] 16/3/2023 10:44

They have to vote Yes, agreed, but if there is another offer, will this not be like we can vote Yes here too?

[wbodger] 16/3/2023 10:38

You couldn't marmar. CA and Kerogen have irrevocably agreed to this deal even if another deal is offered !! I've never seen that before.

[marmar80] 16/3/2023 10:35

If I only had cash to pay more... No brainer to take over it.

[wbodger] 16/3/2023 10:34

CA and Kerogen have irrevocably agreed to this deal. To me that means CA have an agreement to cash their DCUs, either after this becomes Effective or sometime later this year.

Does this give Prax a listing with no dilution because of HUR shares?

[sensemun] 16/3/2023 10:23

[e-mail]
[e-mail],
[e-mail]
[e-mail]
[e-mail]
[e-mail]

Let them all know you will be voting against this shocking deal. I have.