Kistos Share Discussion Threads

[nigelpm] 25/7/2022 12:49

It makes fantastic sense for kistos but barely any for serica shareholders given the huge net cash position of serica.

[alxo82] 25/7/2022 12:45

Why did AA do this? Giving away the majority of the new company? Please, this offer makes no sense from the PoV of any Kistos' shareholder, unless the goal is not to acquire Serica but to expose SQZ management teams as part of a personal vendetta. I hope this third NO from SQZ finalises this silly process.

BTW, I don't read MF as Mitch Flegg, but as something else.

[fandagle] 25/7/2022 09:14

Jeez, when this goes through the new company will have some potential, easily £20 plus per share!

[farmscan] 25/7/2022 09:14

I'm surprised there hasn't been a bit more "urging" here this morning.

[hiddendepths] 25/7/2022 08:07

Still a resounding no. Ain't gonna happen!

[mariopeter] 24/7/2022 14:23

In two minds here which intimates it may be about right. AA will not seek an unfair advantage....no point. Lets see.

[farmscan] 23/7/2022 20:20

Cash, do I detect you're beginning to get a little tetchy?

[cashandcard] 23/7/2022 17:24

Ammon's,There is an offer on the table. Unlikely to get through because you MF bootlickers won't allow it. In the meantime, KIST shareprice continues heading in the right direction.The past is done, look to the future. The only way to efficiently grow an oil&gas company is via a combo of M&A plus organic growth.The current SQZ board cannot deliver that.Cash

[farmscan] 23/7/2022 13:08

Thanks mario.

[ammons] 23/7/2022 12:48

Thanks cash and the rest of the AA worshippers. Just make the new SQZ offer (coz this one is a non starter) begin with a 5 and I will worship AA as well. I will lick his boots too.

[mariopeter] 23/7/2022 12:30

Net cash positive by 6m at end of May 2022. Add another £100m since then ish. Paid for the last acquisition during the first 5 months as no debt taken then.

[cashandcard] 23/7/2022 12:17

MP,Most of the argument regarding SQZ is their cash position and historic performance (really just the securing of the current assets). History is always important, but it needs analysing. Does that deal from a few years indicate they will do the same again? No, they have not since.Andrews history is M&A activity that led to a sale situation within a few years. He has shown himself to be an impressive and prolific dealmaker. Not willing to get comfortable sitting on a pile of cash, you know another deal is not far off.Some retail SQZ shareholders seem to think collecting 3% Divi is better than multiples in growth dealmaking. It only makes sense for SQZ investors back in 2016-2017b(pre-deal) who are probably recieving dividends equal to or more than their original investment. That will be 0.001% of the small fry investors who frequent the SQZ forums on here or LSE.The future and growth is firmly with Andrew Austen at the helm of a combined entity.Cash

[farmscan] 23/7/2022 09:55

mario I don't hold Kistos, so haven't mugged up on the details, but can you give me a snapshot of the cash and debt situation for Kist at the moment TIA.

[alxo82] 23/7/2022 08:42

ammons, I don't see your point, you say SQZ holders don't like and like it at the same time. Anyway, I am speaking as a Kistos' shareholder, I have never hold SQZ, and I don't like the deal, the only good thing is the publicity Kistos has received, attracting the interest of guys from Canada or USA. I hope AA drops it and moves onto the next negotiation, this is a dead end.

[mariopeter] 22/7/2022 21:50

KIST is undervalued and SQZ is undervalued and combined they will be less undervalued. Neither are valued at anywhere near 1.3*EBITDA. KIST is valued at .66* 2022 EBITDA and SQZ 1* 2022 EBITDA.

Mr Institution would you like:

A) an immediate return of cash of £666m cash (which you can reinvest immediately wherever you like incl KIST) and also have a half interest in the (less undervalued) combined company with future dividends.

Or

B)Would you like a 3% dividend return in an undervalued Company with a market cap of £750m.


SQZ people on this board say B) and don't explain why. Lots of pooing in the pants but no explanation.


KIST in retaliation were offered £73m and 28% of the combined group. So if the combined group is producing £1b at 1.8 EBITDA multiple that puts a value on KIST of 577m. WIth an oil asset of £500m and producing EBITDA of £2m per day from gas that's why that is not a good deal.

Anyway we as PIs will have little say in the matter.

"But all the cash is coming from SQZ" well that's not true is it because it will come from the combined entity.

[ammons] 22/7/2022 17:50

alxo82,

I have not come across a single SQZ holder anywhere who likes this current offer. Have a read of the ADVFN and LSE boards regarding KIST. Many of them seem to think that the deal is a good idea even if you dont. Why might that be? Because SQZ is being sold short and KIST knows it. Even if you dont.

[bountyhunter] 22/7/2022 17:26

maybenextyearrodders, but it would be the pacman defence from Serica rather than the other way around.

I received a very nice 3% divi payment from Serica today with a further payment due in the autumn. Not bad on top of the capital appreciation over the years I have held which makes today's divi payment not at all insignificant. Thanks goes to MF and the BoD for all their hard work in getting Serica to it's enviable position today.

Remind me, when is Kist anticipating paying dividends, it's slipped my mind? ;-)

(The answer is not when AA anticipates getting hold of Serica's cash mountain!)

[mickinvest] 22/7/2022 17:09

If gas hits $400 a barrel in winter, I'd take a stab in the dark and say taxation won't be far off UK levels.

[alxo82] 22/7/2022 17:06

ammons, most Kistos holders I know don't want the merger with Serica under the current circumstances. We don't like the price, most of us think the dutch assets shall receive a premium over the UK assets due to lower OPEX, higher gas price and lower taxation, and this is not being reflected in the offer. Also, we don't want any trouble with an egomaniac board, who has done a great job in the past but their last year has been terrible, showing zero willingness to close deals or return value to shareholders.

We want Kistos to keep growing, and the current approach from both sides does not seen constructive; I think both boards have taken it personally and this will not end well for both companies. Market does not like uncertainty, either have a final offer in three weeks that everybody agrees upon or stop this nonsense

[farmscan] 22/7/2022 16:29

Gosh! balance! As far as I can see, that is needed to counter those who are extolling Mr Austin's virtues.

[mariopeter] 22/7/2022 16:27

You are right nextyear. Back to this singles game of Pacman for me.

[anley] 22/7/2022 16:18

Mariopeter.........thank you for your kind words but it really was the fault of greedy brewers..........will leave it that.

I have re-read Kistos prospectus - looked at all the press and brokers reports and for my own reasons have come to the conclusion that Kistos is at the moment overvalued so I have sold my position.

I wish those who are shareholders well - AA is just what the North Sea oil and gas industry needs but he seems to always pay top Dollar.

[nextyearodders] 22/7/2022 16:17

Well I did think some balance was needed - i've been reading ADVFN for a long time - since th old iii forum dropped off, but apparently you have to sign up to post ones musings

[mariopeter] 22/7/2022 15:58

Hi Bounty, Mrs Mario is dreadful at Pacman. What probability did you ascribe to that before tendering your suggested action plan to me?