Ithaca Energy Share Discussion Threads

[chesty1] 06/2/2017 14:17

Looks like it's being taken out too cheap!! Iog a tiddler in the North Sea with decent news and projects due this year, dyo but add to your watch list at least.Hang on tight as I feel more games to be played with IAE.

[bountyhunter] 06/2/2017 14:12

SQZ, SLP (resource but not O&G), but I will be holding on to await developments

[oilandgas1] 06/2/2017 14:11

Cmwillis,

FPM might bE a good option, I was thinking SDX(bought), ENQ (bought small holding), SOu ( holding), Hur (adding) and VOG /FPM ( contemplating).

Anybody else looking at anything with a good story/ financials?

[bountyhunter] 06/2/2017 14:08

agreed but how would we know - unless they are against it and choose to publicise or had to notify a change in holdings ?

[buy curious] 06/2/2017 14:04

The fund managers at AXA and Blackrock are crucial to this.

I guess there have been meetings today and maybe more planned.

Just sit tight for a few days and see what they decide.

[loafingchard] 06/2/2017 13:45

Not impressed

[buy curious] 06/2/2017 13:26

According to my figures, Ithaca just dont have the reserves to command anywhere near 500p

If Brent were to remainin at USD60bb for the next 2 years, a white knight bidder would not make that much profit on a 140GBp per share cash purchase price.

I'm afraid Ithaca need Brent to be over USD100bb to be worth over 200GBp.

Its the debt wot did it.

[cwmwillis] 06/2/2017 13:21

With what is looking like the end of Iae, where you guys looking to put your cash??

Thinking FPM with the bulk of it myself.

Cheers
R

[dozey3] 06/2/2017 13:20

I agree with all the posters who think we holders are being shafted. Does this outfit not have any non-execs who are supposed to represent the interests of ALL shareholders?
The execs themselves far from recommending it should clearly hold fire until Stella is on-line. Then the market can decide what the company is worth rather than a few insiders with bulging wallets and no morals.

[zoomydoo] 06/2/2017 13:07

With the price hovering just below the offer price surely Delek will be hoovering up more shares now that they are bidding?

[bountyhunter] 06/2/2017 13:04

the Venture take over bid was at a 21% premium, this is just 11%



also Centrica already owned 29% of the shares, Dalek only own 19.7% of Ithaca

[speedsgh] 06/2/2017 13:03

Malcy's Blog -

Ithaca Energy - Giving it all away…..

Ithaca has announced an agreed cash offer worth 120p from Delek Group which is a 19.7% shareholder and which puts an enterprise value on IAE of $1.24bn. This bid which is only an 11% premium to the Friday share price, is highly opportunistic, coming as it does only days before the FPF-1 comes on stream at Stella and which will transform the economics of the company. There is no doubt that looking at current analysts’ values of the company the bid might be considered full, but I would contend that those values would have changed significantly in this landmark year and looking forward the bid will look parsimonious in the extreme.

Ithaca has a fine portfolio of assets and a number of these will be proved to be especially valuable to Delek if the deal goes through. Whilst not certain of course, the economics of the sector are beginning to look as bright as they have done for a long time and with industry costs still falling and the oil price creeping up valuations are more subject than ever. Shareholders who are probably delighted with this bid, dont get me wrong, may be about to miss out on the ride of their lives as IAE start up at Stella, raise revenue, pay down debt, all bringing the rating down, and miss taking advantage of what is one of the best managements in the sector.

Having spoken to the management I fully understand that they have the best insight into the risk profile and the potential value of the company going forward and could not in all honestly not put this offer to shareholders with their recommendation. I am also assured that no discussions have taken place about job security and that includes whether the IAE executives are to be kept on should the rumours be true about Delek listing an oil vehicle in London. It should be noted that they also own 20% of Faroe Petroleum another premium North Sea player, maybe following this and the recent Chrysaor deal means that the consolidation of the sector is finally under way. That will be fine as long as long as opportunistic bids are not accepted just as the promised land is under foot and patient shareholders rewards are within tantalising reach. It would certainly not do if an uber cautious board delivered one the sectors finest companies into hostile hands on the cheap and without appropriate vision.

[verulamium] 06/2/2017 12:35

Anyone here remember the Dragon Oil bid a few years ago? ENOC had a majority holding, but were forced to go away when they bid around £4.50 in 2009. Eventually went to ENOC for £8 in 2015. If they couldn't get away with it with a 50% holding, I don't see how Delek can do it with 20% - I doubt if they'll have the big holders on side with an offer like this. Can't blame them for trying though.

[ethics_gradient] 06/2/2017 12:29

Have some time if I'm reading it correctly....

Transaction Process & Timeline

Further details regarding the terms and conditions of the Offer, as provided for in the Agreement, and the process for tendering shares will be set out in a takeover bid circular, which is to be mailed to shareholders prior to 31 March 2017. The tendering process will remain open for a period of at least 35 days following commencement of the Offer.

[bountyhunter] 06/2/2017 12:20

sell now and you get most of the cash without waiting for a couple of months or so but miss out on the chance of a higher or competing offer - I'm definitely holding on as this offer is derisory imho fwiw

[kiqbal] 06/2/2017 12:08

Can someone please explain to a novice like me what happens now, and pros/cons of selling now or holding

[speedsgh] 06/2/2017 11:35

Tweet this morning by oil analyst Malcolm Graham-Wood...



Malcolm Graham-Wood @mgrahamwood
I'm looking at bid for @Ithaca energy this morning, looks way too low to me, big disappointment at first glance.....

[laserdisc] 06/2/2017 10:59

I will wait a bit but it could be may before monies in account depends if you need cash

[husbod] 06/2/2017 10:58

Thanks for that speedsgh - clearly everything possible has been done to make any counter-bid unattractive. How can they justify that break fee?

Not sure it is realistic to expect any improved terms now.

Lots of peeps over the years have commented on various boards how pis can be stitched up on AIM and I reckon this is a classic example.

[speedsgh] 06/2/2017 10:43

The more you look at this, the more this deal appears stacked in Delek's favour. A nice juicy break fee payable to Delek if the company accepts a better offer. C$17m seems somewhat OTT...



In addition to the provisions set out above the Agreement also contains the following key provisions:

...(g) termination rights for both Delek and Ithaca including, for Delek, a right to terminate the Agreement in circumstances where:

i) Ithaca breaches its non-solicitation covenant;

ii) Ithaca accepts a Superior Proposal; or

iii) where the Minimum Tender Condition is not satisfied and Ithaca completes an alternative acquisition proposal with any person other than Delek or a subsidiary of Delek within eight months following the termination of the Agreement,

and in such circumstances Ithaca shall pay a break fee to Delek of C$17,059,465.