Ithaca Energy Share Discussion Threads

[bountyhunter] 10/4/2017 13:30

Brent now at $56

[owenga] 10/4/2017 08:54

Thanks ed and o&e.g. I'll definitely hang on then.

[bountyhunter] 10/4/2017 08:54

yes another sneaky RNS telling us to sell our shares again completely leaving out any mention of the offer document's 10 day extension if successful! (see end of header and link to offer document)

[oilandgas1] 10/4/2017 08:06

Owenga - yes if the offer did go through there is a 10 day extension period, so np.

See previous posts in the last week.

More likely that the 10 day extension period is used to accept a revised offer when the first offer fails.

[edmundshaw] 10/4/2017 08:05

Yes, if the offer is accepted by enough shareholders there will be an extension to allow other holders to take up the offer. Details in the red blurb at the bottom of the header, thanks to bountyhunter.

[edmundshaw] 10/4/2017 08:01

Shameless one-sided propaganda or helpful management waking up poor forgetful investors? Or, as O&G says, desperate? You decide... :-/

[owenga] 10/4/2017 08:01

What happens if we don't accept the offer, but it still goes through. Will we still get a chance to sell our shares? Will the company decide-list? Thanks for your help. I am not proposing to accept the offer, and agree the rns smacks of desperation!

[rich73] 10/4/2017 07:56

Agreed, desperate! That RNS will if anything solidify the remaining shareholders sentiment to hold out.

Either it was a legal requirement or another miscalculation by the board, because I for one feel much more comfortable that we might see a more acceptable outcome.

[oilandgas1] 10/4/2017 07:40

An RNS to remind us to vote .. smacks of desperation . Hold on .. Roll on a revised bid.

[magnoliaman] 08/4/2017 09:57

By Angelina Rascouet
(Bloomberg) -- Delek Group Ltd.’s proposed takeover of
Ithaca Energy Inc. is facing increased opposition from
shareholders, with an investor owning 1 percent of the oil
explorer seeking a higher offer from the Israeli energy company.
Peter Buchanan, who owns 1 percent of Ithaca shares, said
he opposes the current terms of Delek’s offer. Buchanan is the
former co-founder and chief executive officer of Valiant
Petroleum Plc, which Ithaca bought in 2013.
Delek on Feb. 6 offered to pay Ithaca shareholders C$1.95 a
share, or 120 pence at the time. That represented a 16 percent
premium to the 30-day average price. An offer of 150 pence a
share would be a “sensible premium,” that Buchanan “would be
happy with,” he said in an interview Friday. That’s in line with
what Cavendish Asset Management Ltd. has voiced previously.
Cavendish owns about 3 percent of Ithaca shares.
Investors in Aberdeen, Scotland-based Ithaca have until
April 20 to tender their stock. For the deal to go through,
investors have to tender 50 percent of shares not already owned
by Delek, which owned a stake of close to 20 percent before the
deal was announced.
Delek’s offer came 11 days before Ithaca announced the
production start-up of its delayed Stella project in the U.K.
North Sea. The timing of the offer, coming from an inside
shareholder, was “wrong,” Buchanan said. “Surely you’d wait for
the news to come out, for the market to digest it and to
effectively come up with an undisturbed share price based on
that news,” he said.
Investors owning “well over” 10 percent of outstanding
shares are set to refrain from tendering them, Buchanan said.
“It’s an odd time to sell,” with oil prices rising to “more
reasonable levels” and production at Stella on stream, he said.
Ithaca declined to comment.
Artemis Fund Managers -- the fifth-biggest holder with
about 4.2 percent, according to data compiled by Bloomberg --
described Delek’s offer as “disappointing” at the time of the
announcement but has since not said whether it would back the
deal.
BlackRock Inc. -- the fourth-biggest investor -- declined
to comment. Invesco Ltd. -- the third-biggest investor -- didn’t
immediately reply when asked to comment.
“We continue to view the bid by Delek as a compelling offer
at a 27 percent premium to our valuation of the portfolio based
on a long-term Brent price of $70 a barrel,” James Hosie,
analyst at Barclays Plc, said in a note on Friday.
Brent, the global oil benchmark, was at $52.60 a barrel at
12:19 p.m. in London. The median forecast of analysts surveyed
by Bloomberg sees Brent reaching $70 a barrel from 2021.
Although production at Stella started last month, the ramp-
up in oil output and the start of gas exports has been delayed
by issues with the gas-export compressors, with ramp-up set to
start from April, Hosie wrote in the note.
Shares of Ithaca are trading at 115.50 pence a share, up
7.2 percent since the trading day before the deal was announced.

To contact the reporter on this story:
Angelina Rascouet in London at [e-mail]
To contact the editors responsible for this story:
James Herron at [e-mail]
Alex Devine, Dylan Griffiths

[magnoliaman] 08/4/2017 09:55

When this deal falls apart - we need a new management team

[sludgesurfer] 07/4/2017 15:45

Speaking of Valiant....there's a bloomberg article where an ex valiant exec with a significant shareholding says he will not be tendering his stock at the current offer price. It's copied on LSE but I've yet to find a link to the original article. Can anyone oblige?The institutions clearly hold the key. Whilst there's been a recent uptick in oil price it seems that a general bearish sentiment on oil price has taken hold with predictions of 'peak demand' and 'shale swing producer' very much in vogue. However much i disagree with this narrative, i suspect it may make the institutions capitulate.

[dozey3] 07/4/2017 07:45

Agreed, but it is the institutions that will dictate the outcome. My first IAE shares came from the takeover of Valiant; others were added at less than half this offer which is some consolation, when risk was much greater of course.

[jimbobaroony] 06/4/2017 18:51

Yep. It's a disgrace.

[bountyhunter] 05/4/2017 21:17

I suspect that IAE management didn't mention it out not wishing to highlight a potential safety net for anyone who chooses not to accept the offer by the 20 April!

I've added details of the 10-day extension of the offer due to be implemented if it succeeds to the end of the header for future reference.

[speedsgh] 05/4/2017 20:15

bounty/sludge - Many thanks.

EDIT: Mystery solved. Realised I was looking at the IAE circular when I should've been looking at Delek's circular.

[bountyhunter] 05/4/2017 18:49

It's right at the top of the bid circular in red:

No securities deposited to this bid will be taken up until (a) more than 50% of the outstanding securities of the class sought (excluding those
securities beneficially owned, or over which control or direction is exercised by the Offeror, its affiliates or any person acting jointly or in
concert with the Offeror) have been validly deposited and not withdrawn, (b) at least the minimum deposit period required under applicable
securities laws has elapsed, and (c) any and all other conditions of the bid have been complied with or, where permitted, waived, as applicable.
If these criteria are met, the Offeror will take up securities deposited under the bid in accordance with applicable securities laws and extend
its bid for an additional minimum period of 10 days to allow for further deposits of applicable securities.

[sludgesurfer] 05/4/2017 18:09

Page 31 of the circular linked above:"The Offer is open for acceptance from the date of the Offer until, but not after, the Expiry Time, subject to extension or variation in accordance with the terms of the Offer, unless the Offer is withdrawn by the Offeror. In addition, if the Offeror takes up Common Shares validly deposited under the Offer at the Expiry Time, the Offer will be extended and will be open for acceptance for an additional period of not less than 10 days."

[bountyhunter] 05/4/2017 17:24

see post 19903 which said:

just noticed via the LSE thread that if the bid has greater than 50% take up (re shares not owned by Delek) by the current deadline then they will extend the offer by a further 10-days!

...of course they left that bit out of the RNS (let's call that OMITTED NEWS!) but have a look at the top of the takeover bid circular posted on the IAE website (first paragraph in red and further down the pdf):

[speedsgh] 05/4/2017 15:25

I seem to be having a bad day. Not only is the CAD1.95 offer now only worth 116.6p but I also can't find any reference to the 10 day extension period. Would really appreciate if someone could point me in the right direction either in an rns or the circular where it refers to the 10 day extension. TIA

[bountyhunter] 04/4/2017 22:15

thanks for checking that sledgesurfer; no way I'm accepting it unless it gets to the 10-day extension stage