Imperial Energy Share Discussion Threads

[cliffyburger] 30/12/2008 20:55

With IEC's share price closing at 1205p, this is clearly a done deal. Otherwise, the share price would not be within 4% of the takeover price. Nevertheless, my spreadbet is such that I intend to hold on for the extra 40p or so, as it means a few grand more!

Once the dust has settled and I have banked my IEC profit, I intend to recycle some (if not all) back into four of my current holdings, namely:

* Ladbrokes (LSE: LAD)
* Lamprell (LSE: LAM)
* Leisure & Gaming (LSE: LNG)
* Titan Europe (LSE: TSW)

Ladbrokes you know well, yet it trades on a low P/E and high dividend yield.

Cash-rich Lamprell should be familiar to those who follow the oil-services sector, and I eagerly await the trading update on 9 January (ten days hence).

Micro-cap gaming firm LNG trades at 3.25p/4.25p at present, but I value the shares at nearer to 20p. I am the largest individual shareholder in this firm.

Finally, a rival firm recently bought almost a quarter of TSW at 40p a share, versus the current price of 16p/18p.

It's been a pleasure dealing with you, IEC owners. The best of luck to you all for 2009 and beyond. :0)

Cliff D'Arcy
Freelance Financial Journalist

[bahamasoil] 30/12/2008 20:49

I guess it was to be expected that we would incur a delay of five days for our efficient banking system to recoup some of their losses. It has been a difficult year for Barclays!

GL to all for 2009

[togglebrush] 30/12/2008 20:06

Barclays add:-
We will endeavour to release the offer proceeds to your account within 5 business days of receiving them.

So Jan 20 before you spend.

[sailor9] 30/12/2008 19:51

sorry seems to be 96 % will get the cash soon. Only 4 % have to wait longer :-)

[sailor9] 30/12/2008 19:50

...Under the UK Takeover code, OVL needs to pay to all the shareholders of Imperial Energy within 14 days of the December 30, who have tendered their shares. For the rest of shareholders, they will be paid after 14 days of the closure of the open offer, sources said...
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(spob`s link above)
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This sounds to me, like normal calendar days, not banking days.

So cash payment for those roughly 92 % which tendered, will be send out on 13 or 14 th of January. The roughly 8 %, which had not tendered in time, have to wait longer for the cash ;-))

I hope tomorrow we shall get detailed information about the payment date with the official anouncement.

[pingu08] 30/12/2008 19:24

Where will PL pop up next do you reckon?

Don't believe that IEC will be his last venutre, surely one more at least before he lays on a deck chair.

Sold IEC to an indian co.

SFR JV with an indian co.

What next??

[ogeretla] 30/12/2008 19:03

So, either buy in tomorrow morning if it's a decent price and sell when it reaches 1250p sometime in the next 2 or 3 weeks, or buy in tomorrow morning if it's a decent price and wait for the cheque to arrive after 2 or 3 weeks. Or if the price immediately shoots up to 1250p tomorrow morning then forget it and look elsewhere as shareholders who hadn't sent acceptances all sell up as there's no point in waiting 2 or 3 weeks.



New Delhi, Dec 30 (PTI) Decks have been cleared for Oil and Natural Gas Corporation's 1.3 billion pound (USD 1.9 billion) takeover of Imperial Energy with about 96 per cent of the London-listed firm's shareholders accepting its offer of 12.50 pounds a share.
ONGC Videsh Ltd, the overseas arm of state explorer, needed only 90 per cent shareholders to approve its deal, which will result in delisting of Imperial that has most of its energy assets in Russia.

"At the close of the offer period today, about 96 per cent shareholders had tendered their shares," a source close to the transaction said.

OVL plans to delist Imperial and will "squeeze out" the remaining untendered shares by posting them cheques of the offer amount and telling them that their shares were no longer valid.

Imperial, a relatively small Leeds-based firm that has oil producing blocks in Tomsk region of western Siberia in Russia and Kastanai in north-central Kazakhstan, would be the biggest overseas ever acquisition by OVL.

It had paid USD 1.7 billion to buy a 20 per cent stake in Exxon Mobil Corp's Sakhalin-I field in Russia and USD 785 million for a stake in the Greater Nile project in Sudan, both in 2003.

The source said OVL will fund the transaction through a combination of loan from parent company, ONGC, a rupee loan. ONGC would lend USD 1.1 billion to the transaction at 5.96 per cent interest rate while the remaining would be raised from domestic financial institutions.

The entire acquisition and subsequent delisting may take two to three weeks, the source added. PTI

[scoble2] 30/12/2008 18:06

yes i also would like to buy more tomorrow morning and sell it when it reach your target.

[orvis] 30/12/2008 18:05

Ogerette - your logic seems sound to me and thats why people were buying this afternoon I think. Even for us IEC holders there is nothing to stop us buying more for that 3.7% return (annualised thats over 50% pa) assuming we have spare funds to do so of course. Must admit though I would like to see an official announcement first.

[ogeretla] 30/12/2008 17:57

Yes SCOBLE2, hence my question about a guaranteed 3.7% profit in 2 or 3 weeks time if people buy in tomorrow morning at the 1205p level - if it opens at that level...

[scoble2] 30/12/2008 17:54

96% of Imperial investors approve buyout by OVL: PTI

[stuart14] 30/12/2008 17:45

I want to see it officially announced mate.

[ogeretla] 30/12/2008 17:40

Stuart14 - "really relax" ? There's over 96% acceptances.

[ogeretla] 30/12/2008 17:33

Hmm, maybe I've misunderstood, but I thought that current shareholders couldn't actually sell their shares if they've accepted the offer. Fair enough for those people who haven't sent their acceptances though - I could see them sell into the market. But I was thinking more of people who don't actually hold IEC shares right now - i.e. buy tomorrow morning and hold for 2 or 3 weeks for a guaranteed profit ? Have I got this wrong ?

[stuart14] 30/12/2008 17:30

Totally agree. We'll have a slow creep up as we approach the payment day. Just want the official RNS now to really relax

[spob] 30/12/2008 17:29

Time value of money


If it were 1250 now, i would sell all of my shares

I don't expect the price to close up fully, even after the confirmation rns

that's quite normal

[katsy] 30/12/2008 17:22

Ogeretla if the price was £12.5 who would wait 14 days to get there money when they could get it now. Also until that RNS is out then there will be that small doubt in peoples minds.

[ogeretla] 30/12/2008 17:18

So, closed at 1205p - might open at the same level tomorrow (though probably higher) but why is it not already 1250p seeing as the news was out before the market closed ?

i.e. if it opens at, say, 1205p tomorrow morning and it takes 2 or 3 weeks for the deal to finalise, then surely it's a 100% guarantee that you'd make about 3.7% profit - put in, say, £10k and make about £370 in 2 or 3 weeks time - assuming the shares can still be bought at the moment ?

Is there a flaw in my logic here ?

[katsy] 30/12/2008 17:01

benny/stuart you know why? it's becasue this share price is in the multiple £ range and not your penny share type that the mug punters are attracted to.

[steelwatch] 30/12/2008 17:00

Well done all - probably the result will go before an ONGC board meeting tomorrow morning (Indian time) to authorise a formal announcement here first thing or thereabouts.

Now - decisions, decisions. Where to stick the proceeds?

[stuart14] 30/12/2008 16:50

Here here Benny. The best on ADVFN

[benny62] 30/12/2008 16:50

DB damaged their own reputation.....beware of the manipulation by DB of any share where they have a major holding