Imperial Energy Share Discussion Threads

[spob] 28/12/2008 09:03

nobody could be so stupid as to hold that much woolies stock

except for alan sugar and the old nag

[togglebrush] 28/12/2008 07:25

from
Economic Times (India)

Imperial reminds shareholders to close ONGC deal
26 Dec 2008, 0154 hrs IST, Piyush Pandey, ET Bureau
MUMBAI: The shareholders of UK-based Imperial energy have just one and half days left to tender their shares to Oil and Natural Gas Corporation

(ONGC). Thanks to the Christmas holiday in the UK, the shareholders have been left with only one full working day on December 29 and till 1 pm on December 30. ONGC can walk out of the bid, which most analysts say is over-priced, if it does not receive 90% of the Imperial shares.

The Imperial management has reminded its shareholders of this narrow window of opportunity. In a note to its shareholders, Imperial said: "As we approach the Christmas holiday period, Imperial Energy shareholders are reminded that there are only a limited number of working days prior to the first closing date of the share offer."

The registrars Capita Registrars and CREST will remain open on December 29 and part of December 30. Merrill Lynch International and RBS Hoare Govett are Imperial's advisors to this deal.

Imperial Energy directors are "strongly recommending" that shareholders accept the share offer "as soon as possible" and in any event, ensure that such acceptances are received prior to 1 pm (London time) on December 30, to ensure the share offer does not lapse, the note said. ONGC is not obliged to extend the share offer beyond December 30 if at least 90% of Imperial shareholders did not accept the offer, the note said.

[yuka] 26/12/2008 15:32

Volsung - sadly I think you were left Woolworths shares worth £0 not £454,422. Where did you get that figure from?

[someuwin] 26/12/2008 15:10

Imperial Of energy is acknowledged by the best foreign company of year on the sums of the pre-new-year interrogation Of rusEnergy


Moscow, on December 26. /RusEnergy/.

The best foreign company of year in Russian [TEK] acknowledged British Imperial Of energy. Company became conqueror in one of the nominations of the traditional pre-new-year interrogation, which is conducted by the agency Of rusEnergy. The chief branch analysts of the country participate in it.

For company, based by Peter Levin and Alexander [Kapelson] in 2004 ; it was possible in four years to increase capitalization practically from zero to $2,3 billion in 2007. it fell under the criticism from the side of former [zamglavy] Of [rosprirodnadzora] of Oleg [Mitvolya], who accused Imperial Of energy of overstating of reserves.

But at the beginning 2008 g. [GKZ] it affirmed the new reserves Of imperial Of energy according to the Russian classification, after which idle conversations calmed down. But at the beginning of December Indian ONGC made to the shareholders Of imperial Of energy an official proposal about the buying up of actions on "summer" prices, and at the beginning of the following year they will, apparently, obtain generous reward for the appeared patience and faith in the company.

In the number of aspirants in such nominations, as "foreign company of year" and "the transaction of year" they entered also Swedish WSR, which accomplished confluence with the Russian group "alliance", and British Timan Of oil and GaS. For the latter was possible to open large in recent years petroleum deposit with the reserves of more than 100 mln t, located in the republic of Komi.

In the interrogation participated Vyacheslav [Bunkov], chief for analytical administration OF IR "[ATON]"; Vitallium of hooks, the analyst OF [IFD] "Of [kapital]"; Dmitriy Aleksandrov, analyst IR Financial Of bridge; Mikhail [Krutikhin], the analyst of the agency Of rusEnergy; Valerie Nesterov, analyst IR "Troika- dialogue"; Maxim Of [shein], the chief of the analytical division OF IR "[Brokerkreditservis]"; Alexander [Razuvaev], the deputy chief for analytical administration, the division head of the market analysis joint stock company "Of [sobinbank]".

[volsung] 26/12/2008 14:51

I have had £454422 worth of Woolworth's shares left to me by my late uncle. Should I just chuck them? Surely there's not much point in holding on to them except of course for their sentimental and novelty value.

[madjock2] 26/12/2008 12:08

5 years for insider trading

[squintyflinty] 26/12/2008 10:43

Is there anything stoping ONGC to take a large long holding once Capita registrars have informed them that the 90% level has been attained?

[shiny1000] 25/12/2008 13:01

London: Index-tracking funds which own shares in UK-listed Imperial Energy have agreed to sell their shares to India's ONGC, removing a possible bar to ONGC's agreed $2 billion takeover of Imperial, a market source familiar with the matter said.



"The index funds have accepted," the source said.

ONGC loses over Rs 1570 cr in revenues

Some investors feared the takeover would not proceed because they believed tracker funds would not submit their shares by the Dec. 30 closing date on the bid.

Imperial says no Lehman risk to ONGC bid

Bankers and shareholders expect ONGC to walk away from the high-priced takeover if its condition for 90 per cent acceptance is not met by the first close on the deal, rather than extend the bid, as acquirers usually do.

ONGC, IOC in pact for oil, gas exploration

ONGC agreed its 1,250 pence/share takeover in August, when oil was trading at around $130/barrel, compared to around $40/bbl now and Indian media reported the state-controlled company wanted to renegotiate or withdraw from the deal.

[17john17] 25/12/2008 11:10

Cliff-thanks also.
My impression from the comments is that the 90% was inscribed by OGNC at the last minute when the Takeover Panel refused their withdrawal. Seems unlikely that they would have thrown in a spanner to start with.
I wish ONGC and their money a Mery Xmas and hope to see them in the New Year.

[orvis] 24/12/2008 14:03

Thanks for explaining that a 90% acceptance clause is normal, which is what John's original question was about.

[cliffyburger] 24/12/2008 13:45

orvis, you misunderstand the nature of these takeover deals.

If a bidder for a company achieves acceptances falling short of 90% of the shares in issue, then it can walk away without stating any reason. Of course, most don't, since they genuinely want to acquire the target company. Instead, the bidder agrees to extend the acceptance period, in order to secure 90%+ of the shares, at which point they must compulsorily purchase the remainder.

ONGC Videsh does NOT want to take over IEC at 1250p a share, because the price of oil has plunged from $120 a barrel to $40 since it approached IEC. However, it was forced to bid by the Takeover Panel. Hence, the only legitimate way for ONGC to walk away from a firm offer is if the 90% threshold is not reached.

In conclusion, the 90% figure comes from the Takeover Panel's general rules, and not from any specific contractual term agreed between ONGC and IEC.

I hope this makes sense. ;0)

Cliff

[orvis] 24/12/2008 13:35

I think the question was why have a walk away option for ONCG if acceptances are below 90% written into the deal in the first place and is it normal.

[madjock2] 24/12/2008 13:17

john

As Cliffyburger says. at 90% the offer MUST go through and the remaining unpledged shares are compulsory purchased. at 75% the Indians can apply to delist the company if they want and the unpledged shareswould be "surrendered".

Theproblem is that the Indians wanted the deal when thy thought they had a steal and now the poo has fallen they are not so keen and therefore will only be forced to complete if 90 % accept.

The Chinese on the other hand completed their purchase of Tanganyaki without a quibble as they understand better the true future value.

[debbiegee] 24/12/2008 13:13

We are still allowed to trade due to the trading facility.

Merry Christmas everybody and a happy healthy prosperous New Year !!!

[cliffyburger] 24/12/2008 12:46

The simple reason why ONGC is insisting on 90% acceptances for the takeover to succeed is that it doesn't want to pay 1250p a share for IEC, because the oil price has fallen by two-thirds since its initial approach. Hence, by setting the bar as high as Takeover Panel rules allow, this gives ONGC an excuse to walk away.

As things stand, IEC is now a binary bet with two outcomes:

1) 90% acceptances are reached by 1pm on Tuesday, the bid succeeds and we all get 1250p a share; or

2) acceptances fall short of 90%, ONGC pulls out and IEC's share price falls to, say, £5.

As things stand at present, the market is pricing in a roughly 69.5% chance of the bid succeeding. One way or another, we'll find out on 31 December at 8am...

[yuka] 24/12/2008 12:38

John - presumably ONGC didn't want to be stuck with say 80% with 20% that it coudn't force to sell. Once at 90% it can force the the remaining shareholders to sell out.

[napracc] 24/12/2008 12:35

That deadline reminder is dated the 19th so history, not today.

[17john17] 24/12/2008 12:29

Jock-thanks but still what was the reason for it? What did it achieve ?

[madjock2] 24/12/2008 12:25

John at the time of the offer 75% would have been enough for the Indians to enforce it. If only Sinopec had bid!!

[davius] 24/12/2008 12:24

My shares still appear in my portfolio but the bid price has gone, presumably indicating that now TDW have accepted on behalf of their clients, they no longer permit you to trade any shares agreed at at midnight last night.

[17john17] 24/12/2008 12:16

This 90% has proved to be a thorn in the side.
At the time of the offer and recommendation no side had an interest in being
obstructive.
So who on earth came up with it-is it a takeover-rite-of-passage process perhaps?

[cliffyburger] 24/12/2008 12:14

IEC issued another deadline reminder to shareholders on Friday, 19 December:


"As we approach the Christmas holiday period, Imperial Energy Shareholders are reminded that there are only a limited number of working days prior to the first closing date of the Share Offer. The Imperial Energy Directors are strongly recommending that Imperial Energy Shareholders accept the Share Offer as soon as possible and in any event, such that acceptances are received prior to 1.00 p.m. (London time) on Tuesday, 30 December 2008, to ensure the Share Offer does not lapse.

As previously indicated, Imperial Energy Shareholders should be aware that Bidco is not obliged to extend the Share Offer beyond 1.00 p.m. (London time) on Tuesday, 30 December 2008 if Imperial Energy Shareholders have not by that date validly accepted the Share Offer in sufficient numbers to satisfy the 90 per cent. acceptance condition set out on page 27 of the Offer Document."

...and so on...

[shiny1000] 24/12/2008 11:47

Merry christmas to all. katsy yes, you've spoken like a true gentleman...confuscious says...words come from the heart!

[katsy] 24/12/2008 11:35

OK chaps and fellow PFJs I'll be calling it a day for ADVFN and begin the festive season in earnest. It's been a long hard year for me and I'm sure many of you as well. So here's to a very happy Christmas and a nice present from IEC on the 30th. Remember it's only money and family and love ones will always come first.