Salamander Energy Share Discussion Threads

[elrico] 27/10/2014 11:51

VSA retained its ‘buy’ on Ophir (LON:OPHR) following its bid approach for Salamander Energy (LON:SMDR).
“If a deal were to be completed, Ophir would have a better access to the energy starved Asian market, and would be able to rebalance its African-focused gas portfolio into more oily assets from Asia,” VSA told clients.

[moniclub] 27/10/2014 11:11

It would be fairly unsurprising if Ophir had 'inside knowledge': the Ophir CEO Nick Cooper was the co-founder and former CFO of Salamander ;-)

[specul82] 27/10/2014 10:25

Can accord reiterating a 140 buy recommendation

[nigelpm] 27/10/2014 10:09

ah, good find PT. Haven't been as close to this as I should have been.

[puffintickler] 27/10/2014 10:05

I understood the recent bond issue already included $100 M earmarked to pay off the convertible bonds maturing in 2015?

The proceeds from the bond issue will be used for the general corporate purposes of the Group, including the refinancing of the Group's existing US$50 million Kerendan Bridge Facility and, at Salamander's discretion, up to US$100 million of Convertible Bonds.

[nigelpm] 27/10/2014 09:57

Can't see it pineapple if I'm honest. Got a lot of debt without the SONA deal.

[pineapple1] 27/10/2014 09:51

Why won t they be able to finance at a sensible rate. They are not a distressed asset. I would have thought they would get an excellent deal in the re finance market.
imho

[nigelpm] 27/10/2014 09:35

As emptyend notes with the bonds due in March 2015 and it being IMHO highly unlikely that SMDR would be able to refinance at a sensible rate and an equity issue completely out of the picture SMDR's hand will be forced. They do have a bit of bargaining though with SONA transaction still on the table - it will ultimately come down to whatever OPHR/AN Other want to pay.

[salpara111] 27/10/2014 09:31

I can't imagine that after all this time the big institutional holders will be willing to sell out for around the £1 mark as they will mostly have to realise large losses on their investments.

[votich] 27/10/2014 09:17

Been watching these for a while and now in, appears close to the endgame now. Looks like Ophir Energy have inside knowledge, looking to the region generally and have cash to burn as been buying their own stock for some time. Are any long term holders aware of previous bid interest which may start a bidding war?

[pineapple1] 27/10/2014 08:11

Nothing happy about a poxy £1. The values of most oilers are depressed. Not a good time to be for sale.
imho

[sawadee3] 27/10/2014 08:10

Just touched a pound, can we smash it today?

Happy days chaps :-)

[emptyend] 27/10/2014 08:02

One very relevant point in all this activity is surely the $100mn bond that falls due in March. One of the three deals seems likely to get done, whatever the terms.

[hjs] 27/10/2014 07:54

IMHO smdr will open at 1.25 and bid may come at 1.50

[ed 123] 27/10/2014 07:40

Hmmmm. So it seems that the BoD prefer to go with the SONA deal and would likely use the retained part of proceeds to buy some other assets. If that were to happen, shareholders would presumably get their 11p per share but debt would go back up. And the shareprice? .......... Back to where it is?

It's not a prospect that inspires me.

[pineapple1] 27/10/2014 07:26

Equity performance as holders know has been awful ,but solace can be taken from the fact that this is the 2nd time in recent months that others have expressed interest so little doubt should remain that SMDR assets are notable.

The board did not rec the last offer at about £1.50 so little point in pitching one around £1,but worth a try i guess.I reckon £1.30-£1.40 may get it now due to poor conditions. Alternativiley the board plays hardball.
Interesting times.
imho

[speedsgh] 27/10/2014 07:23

Two approaches is certainly positive but going on their performance over several years I'm not sure this BOD can be trusted to judge what is in the best interests of shareholders. 'Leopards' + 'spots' springs to mind!

Sounds to me like they are more interested in trying to preserve their jobs than maximise shareholder value. Call me a cynic but I'm certainly not holding my breath. We'll know what the market thinks within the hour. Hopefully I'm proven wrong.

[nigelpm] 27/10/2014 07:11

Yep. Best news possible really.

Two offers and SONA still on track - in other words a low offer won't succeed.

[pineapple1] 27/10/2014 07:09

Well confirmation that there is interest.

Contrary to remarks in the press, the SONA Transaction remains on track for completion before the end of 2014, in keeping with the timetable and strategy previously outlined. The $280 million of proceeds from the SONA Transaction would strengthen Salamander's balance sheet and would place the Company in a strong position to benefit from opportunities arising from the current market conditions.

The above is the bit i am interested in. Sounds like they are running the slide rule over another outfit....

[ammons] 26/10/2014 10:26

After all this pain all we get is a measly squid?

[nigelpm] 26/10/2014 10:15

Agreed Sporaz. Fairly sure £1.30 would succeed.

[sporazene2] 26/10/2014 10:13

nigel, would settle for 1.30 with oil at $85, keen to cash up and move on. cant imagine that the larger shareholders are keen for the BOD to keep drawing their large salaries after the debacle of the last few months.

[nigelpm] 26/10/2014 10:04

That's my concern pineapple. Whilst I agree £2 was dreamworld. £1.50 felt about right to me but clearly I was hoping for a bid premium - say £1.70.

That does now seem like a world away.

£1.30 may well succeed in current markets but £1.07 definitely not.

[nigelpm] 26/10/2014 09:28

In the event of a true bidding war what is salamander truly worth in this market.

Ultimately, whatever their respective board of directors are willing to pay against the value SMDR board of directors can demonstrate they can create for shareholders.