Hurricane Energy Share Discussion Threads

[agnabeya] 08/4/2023 12:15

Whoever said -‘there is no such thing as a stupid question’ never met me.
So here goes.

If I have not sold my shares by the time this ‘arrangement’ is concluded- how can I sell them later, as PRAX is not listed on Aim? I’m presuming once the arrangement is concluded, HUR will be no more?

[senseman] 07/4/2023 11:21

kooba - the issue being important i raised it on LSE 11.11 today and opined PIs should visit ADVFN for your view. most won't bother. i think you should copy your ADVFN post to LSE. I would have but want to avoid any unnecessary handbags

[kooba] 07/4/2023 04:45

Last line answers your own question "The minority squeeze-out mechanism is not relevant to a scheme as the scheme will bind all shareholders when it becomes effective.""The main advantage of a scheme of arrangement is that, if successful, it will bind all shareholders (regardless of whether, or in what way, they voted). However, due to the High Court's involvement, schemes of arrangement are less flexible structures than contractual takeover offers."Same sourcehttps://www.burges-salmon.com/news-and-insight/publications/guide-to-public-takeovers-in-the-uk

[senseman] 07/4/2023 00:35

From Burges Salmon 'Guide To Public Takeovers in the UK'

3. Minority squeeze-out mechanism
Under the Companies Act 2006, bidders making a contractual takeover offer have the right to acquire compulsorily the shares of minority shareholders if they have acquired, or unconditionally contracted to acquire, both 90% of "the shares to which the offer relates" (i.e. the shares which were not held by the bidder at the time the offer was made) and 90% of the voting rights in the company to which the offer relates. This therefore means that any shares held by the bidder before it formally makes an offer for the target company will not count towards the 90% thresholds. The minority squeeze-out mechanism is not relevant to a scheme as the scheme will bind all shareholders when it becomes effective.

[senseman] 07/4/2023 00:28

bodger - i agree, with only circa 20% shares in PI hands, even if ALL voted (they won't) and all voted NO (they won't, the NO vote would need a chunk of inst invests to vote NO.

Kooba - a PI forum member purportedly with (retired) expertise in the takeover field phoned me recently and opined that 90% was needed in order for Prax to be able to force those voting no to sell their shares. Otherwise they could elect to remain private SHs in 'private HUR'. As it's not my field I advised he post his knowledge and view but he was reluctant to 'get involved' on the forum. And to date he has not posted.
If and when you have time could you post/opine in lay terms for all to ponder why the normal 90% level need not be obtained by Prax to force unwilling sellers to sell and thus enable Prax to get 100%? Thanks

[kooba] 06/4/2023 18:52

Can you explain the deal in plain English?The deal structure is complex but straightforward in its intent, which is that Shareholders are paid as much of the Company's existing free cash as possible and then receive returns as future production and tax losses create value.Shareholders will receive up to 6.02p/share in cash, being 4.15p/share (the Firm Proceeds) plus up to 1.87p/share (the Supplementary Dividend Amount).In addition, shareholders will receive a Deferred Consideration Unit (DCU) which may deliver up to 6.48p/share, plus such amount of the Supplementary Dividend Amount which is not declared as a dividend prior to the Scheme Effective Date.Therefore, shareholders could receive, if full value is delivered by the DCUs, 12.50p/share.From Q&As on https://www.hurricaneenergy.com/investors/formal-sale-processWorth a read.

[janekane] 06/4/2023 18:44

So what are we actually going to get for each share
it’s very complicated trying to work out what the offer is
It’s very bamboozaling
Has any one here got the answer

[philwalker36] 06/4/2023 18:13

75% is a high bar to reachDepends if enough peopleFeel strongly enough and can be bothered

[agnabeya] 06/4/2023 18:13

Thanks Marmar. I didn’t know if it was within reach realistically.
I would sell at slight loss if it reached 9p.
I don’t understand how shares outside of AIM operate.
I think I would also lose my tax free Isa status-
although I’ll have to check what Cap Gains tax is these days.
My dreams of avoiding CG were when I thought it would hit 20p or more😆

[marmar80] 06/4/2023 17:57

If ordinary shareholders decide to vote against, then it won't pass, but question is how many will actually vote.

[agnabeya] 06/4/2023 17:54

Phil- is it actually possible that a shareholder ‘No’ vote could win?
With CA voting Yes- does their holding not surpass private shareholders votes?

[philwalker36] 06/4/2023 16:30

My small percentage 4 million shares, are going to vote no. I hope they are the tiny fraction of a percentage that tip the vote to a no.

[kooba] 06/4/2023 16:29

Whose we ? I would be very wary of rolling the acquisition dice and although there was the Buckingham talk from CRS ( on the basis that Albion would go and raise money to pursue acquisitions or drill ..not sure where!?) they have made it clear they want maximum cash out and do not want the balance sheet used in that way..its sort of the reason the company went into a FSP because CRS would not back an acquisition strategy.I suppose we find out their plans if the scheme fails but i don't think that shareholders should presume they are on the same page ..and with 28% can pretty much call the shots.

[marmar80] 06/4/2023 16:21

Yes kooba, but after voting No, we can reset Hurricane board and purchase another company with licences, in any other possible place.

[kooba] 06/4/2023 16:18

Its the takeover code that is important here not AIM rules.This is not a takeover its a scheme of arrangement and Prax reserve the right in the docs to make a takeover instead on the same terms i believe.Too many documents to dig that out but i did see it on reading through a few weeks ago.If the scheme fails CRS would be immediately free to do whatever they want with their shares..i doubt they would dump any but I'm sure would be still looking for an exit.

[wbodger] 06/4/2023 16:06

Wouldn't Prax be barred from another bid for twelve months under AIM rules?

CA might make a private deal with them, I suppose. That would put CA's blocking stake into their hands.

[kooba] 06/4/2023 15:39

If less than 75% of those that vote are in favour then the deal lapses I guess..it would then be up to Prax if they walk away or return with an offer...or whether the company goes back to discuss terms with under bidders but there can be no guarantees anyone is there as a backstop or how long any process would take or at what level ...but the official line is "What happens if this deal doesn't get approved? Would you switch to another bidder's offer, or go straight into a capital return process?We hope this deal will be approved in line with the Board's recommendation. If it does not move ahead, we would return to our original plan to return capital (US$70-80 million) to shareholders, which again we note will be less than is possible under the Prax offer."

[marmar80] 06/4/2023 15:31

What will happen if there is no 75% yes votes?

[wbodger] 06/4/2023 15:30

senseman, do the math on the 45%.

I'm not going to post contrary views to the hopes I once had of 20, 30 pence because I am very appreciative of all you have done, real senseman, especially when the crooked cram-down was in prospect.

Anyone who was going to bid could have gone over the Board's head I would have welcomed Albion, Buckingham, Viero or anyone ready to have another go at Lancaster or anywhere on Rona Ridge, and I would certainly have stayed in.

It's all about the 900 million shares already committed to Prax. Two institutions with 2.6% each (under 3%, so not required to disclose) would put it over a billion.

We don't have to vote yet. Sincerely good luck, and thanks for all the posts.

[kooba] 06/4/2023 15:28

Fact ..if 75% of those that vote are in favour of the scheme there is compulsory purchase of the whole company ..there is no situation where there will be dissenting minority shareholders through a scheme of arrangement.dyor.Q22 What will happen to Hurricane shares once the company is delisted?If approved by Shareholders and the court, then all the Company's shares, including those who did not vote to approve the Scheme, will be delisted from AIM and transferred to Prax. In exchange, shareholders will receive up to 6.02p/share and one DCU/share.

[senseman] 06/4/2023 14:49

We are looking safeish at 84-85 oil for April first 5 days 3rd-7th. IF oil reaches 90 by end April, better delay offload till May 1 if tanks will hold it so offload priced at May start or end price?

[senseman] 06/4/2023 14:44

bodger - what is the sense in accepting the deal first off? even if one is minded to, surely the smart thing is to vote no as if 75% not achieved Prax will raise offer. And if 75% achieved but not by much Prax will have to increase offer otherwise risks having hefty rump of PIs holding shares in private HUR. Remember - they can't force purchase of those unwilling to sell unless they have 90%

[wbodger] 06/4/2023 14:04

That was what I was wondering. Thanks.

[kooba] 06/4/2023 13:48

On the basis"As of 2 April 2023, Lancaster was producing c.7,530 bopd from the P6 well alone with an associated water cut of c.53%. At that time the FPSO held c.335,000 barrels available for lifting. The next cargo is anticipated to be lifted in late April 2023."We should be up to full off load of 525k by 27th April...though they could offload slightly less if weather an issue to get it in by month end ! So looks good for supplementary dividend to be paid in full too..if the scheme goes through.