Sarantel Share Discussion Threads

[wbodger] 22/2/2013 09:41

Anyone still invested here? The decline early this week was a reaction to the placement announcement:


My view is that Azancot has gone "all in" to get funds to continue until June - ie hoping the cards will bail him out. (Not a good idea to have a poker player running your company, imo.) The share price fall is a technical adjustment from the dilution. If it comes good and one of the "full range of options" comes through I suppose he hopes to retrieve part of the situation and get a few more pence on the bid.

Vitol won't go away. Interesting to see if and when it gets nasty. (Every time there is a placement they get diluted along with other shareholders.)

[plunge] 17/2/2013 21:43

The BoD have clearly stated it will be up to the shareholders to approve any sale.

Over the last month only 7.5% of the Company's shares have changed hands. It is fair to assume that most of this was probably down to small punters bailing out. What remains unclear are the intentions of the major shareholders.

Perhaps it is they that are dictating terms to the hapless Board. There may still be a twist in the tale.

[wulwirth] 17/2/2013 19:46

At least the bod are trying to find a buyer,other companies at this point would simply throw in the towel IMO.

[broncowarrior] 17/2/2013 09:30

Parent company would remain as a shell, operating sub including ip would be sold. So parent would have a cash injection which it would distribute to shareholders. Wouldn't get your hopes up that it will be much.

[scientologyweirdo] 16/2/2013 22:33

"in discussions with a third party for the sale of its operating subsidiary."

Does this mean they will sell but retain the listing which could be used as a shell ?

[loglorry1] 15/2/2013 15:43

Cash Sprott are supporting the offer but they are not doing so conditionally - if a better offer comes in they can jump ship. If it was unconditional Vitol would have said so.

[cashandcard] 15/2/2013 13:48

For those who have not seen the news:

-------------------------------------------------------->>

Vitol Announces Cash Offer for Sterling Resources Ltd.


ROTTERDAM, Netherlands, Feb. 12, 2013 /CNW/ - Vitol Anker International B.V. ("Vitol Anker"), a wholly owned subsidiary of The Vitol Group ("Vitol"), announced that it intends to make an offer (the "Offer") to acquire all of the outstanding common shares (the "Shares") of Sterling Resources Ltd. ("Sterling" or the "Company") (TSXV: SLG), not beneficially owned by Vitol Anker and its affiliates, for cash consideration of $0.85 per share in a transaction which values the fully diluted share capital of Sterling at approximately $192 million.

Background to the Offer

Vitol and its affiliates provided a US$12 million loan to Sterling in early January to enable the Company to meet its short-term liquidity obligations. Since that time, Vitol has held discussions with Sterling's management and, based on the Company's inability to find an acceptable long-term financing solution, Vitol Anker has decided to pursue an offer for the Company. To that end, Vitol has held discussions with Sterling's board of directors (the "Sterling Board") with a view to secure a board-supported transaction but these discussions have, to date, not led to an agreement. Given continuing rumours and uncertainty around the Company and its financial situation, Vitol Anker has made the decision to disclose its intentions.

Compelling Offer to Sterling Shareholders

The price to be paid in the Offer represents an attractive premium of:

79% to Sterling's closing price on February 12, 2013, the last business day prior to this announcement; and
48% to Sterling's 20-day volume-weighted average price as at February 12, 2013.
The cash price to be paid in the Offer provides Sterling's shareholders with certainty of value and immediate liquidity.

The Offer removes the risk to shareholders from Sterling's near-term and long-term need for significant capital expenditures, which could result in numerous, potentially dilutive and uncertain financings to bring the Company's projects to completion. Vitol Anker is prepared to immediately enter into further discussions with the Company to provide additional interim financing for the period whilst the Offer is outstanding.

Additional Information to the Offer

Vitol Anker has received support for the Offer from Sprott Asset Management LP ("Sprott"), which holds approximately 9.9% of the Shares. Sprott and Vitol Anker have entered into a lock-up agreement under which Sprott has agreed to tender its Shares to the Offer, subject to certain conditions.

The Offer will be subject to usual and customary conditions such as confirmatory due diligence including an assessment of the current liquidity position of the Company, receipt of all required approvals and consents, and that not less than that number of Shares, which together with the Shares directly or indirectly owned by Vitol Anker or its affiliates, constitutes at least 66 2/3% of the Shares be deposited under the Offer and not withdrawn. The Offer constitutes an "insider bid" under applicable securities legislation, which requires, among other things, that a formal valuation be prepared under the supervision of the Sterling Board. The Offer will commence by way of a formal offer and take-over bid circular to be mailed to shareholders as soon as Vitol Anker receives such formal valuation. Vitol Anker looks forward to Sterling's co-operation with the timely preparation of the formal valuation to allow shareholders of Sterling to realize immediate value and liquidity from the Offer.

The Offer will be made by Vitol Anker which, along with its affiliates, currently holds approximately 14.0% of the Shares. Further details concerning the Offer will be included in the formal offer and take-over bid circular. The Offer will be open for acceptance for at least 35 days following the commencement of the Offer, subject to Vitol Anker's right to extend and vary the Offer as permitted under applicable securities legislation.

Vitol Anker has retained Credit Suisse Securities (Europe), Ltd. as its financial advisor and Norton Rose Canada LLP as its legal advisor.



---------------------------------------------------

Interesting to see Sprott have thrown in the towel.

Cash

[loglorry1] 15/2/2013 13:45

Unfortunately, not the only question since Vitol could withdraw offer - unlikely but the possibility is there its non-binding.

The situation is complex I doubt another bidder will come in unless side sales of Cladhan etc. can be agreed in advance. Looks tricky but you never know.

Log

[marben100] 15/2/2013 13:34

Only question is, will another bidder come along?

[wbodger] 06/2/2013 23:52

Well, if they didn't discuss the payment deferrals in advance the suppliers will be surprised to read about it in the announcement! That's the question which occurred to me too.

Again the share price stabilised a bit before close, and a lot fewer shares were traded.

I'm amazed at how they are always reacting to the market - did they really think this sort of news wouldn't leak and put the share price under pressure?

[lonrho] 06/2/2013 22:45

I think they felt they had to come out with something as the shares were down 22% at one stage yesterday and they must have felt a bloodbath was possible today.

I am not a fan of a high yield bond as interest and repayment of principle would eat up a significant portion of early Breagh cash flows. They need to sell some assets as they have over extended themselves.I am not bothered what so long as it brings the company back onto a sound financial footing.

The release doesn't say whether the payment deferrals have been agreed with the suppliers. I am hoping that they have done a deal with RWE as after all as the operator of Breagh they can reimburse themselves from gas sales proceeds when it finally comes on stream. Suppliers could not get this into court and obtain a winding up petition in 6 weeks.

I would think any high yield bond would need evidence of Breagh ongoing production levels before it would be attractive to investors and so Q2 looks a bit optimistic to me.

[wbodger] 06/2/2013 22:03

Nobody commenting?



The absence of hard info in the announcement made me wonder if Azancot is even in the loop any more. It's odd to put out an announcement without a deal signed. But I posted that last time!

It would be good news if they can solve their problems with a high-yield bond but that takes us back to Breagh. It's only possible if he's not expecting any more delays.

"The Company is deferring payment schedules with a number of key suppliers in order to extend available funds well into March, by which time the Company is confident it will have additional financing to fund the group through to mid 2013."

He's basically saying suppliers will not put him out of business for six weeks and that's all he needs.

[ih_215233] 06/2/2013 18:50

Plunge he earns it, works extremely hard 24/7, should inlude a pay rise plus extras, to cover income tax, lets say £210k rise to £455.00 p/a, should be manageable lol. Throw in luxury and second car, lets say..one of these, for the odd weekend hobby.

[wbodger] 05/2/2013 21:11

It recovered a bit at the end. I wonder if someone a bit more savvy got some news out to stop wild speculation? Still finished down 11%, high volume but not panic selling.

[markyp23] 05/2/2013 19:38

Everything has its price and...if I wasn't already massively underwater here, as a new investor would I think I was picking up a bargain here...?

I think probably yes. It might be a good time to get some for the ISA. But I'm not sure I'm that brave.

[wbodger] 05/2/2013 19:37

Too early to invest any more in this extremely sick parrot. Obviously something is moving it, possibly Breagh related (I see RWE have an industrial dispute now).

SLG's finance plans were somewhat dependent on a second tranche of cash from XOM weren't they? Brave people to invest more until we know what ugly news is in the pipeline. Speculation in Canada that the cash raising will be under 50 cents. (That seems blindingly obvious.)

Sleeping, ohisay.

[loglorry1] 05/2/2013 18:18

Yes but that's not new news - not out today anyway was it? It's been well flagged that delay.

[ohisay] 05/2/2013 18:06

Log did you notice new presentation dated 30/1.?



Breagh now May 2013.

Positively nailed to its perch I'd say.

[loglorry1] 05/2/2013 17:49

yes you have lost it but given the price action in SLG I can see why. I may join you.

[ohisay] 05/2/2013 17:38

Its pining for the fiords.

[loglorry1] 05/2/2013 17:34

Hi Lonrho - its very strange since they pulled the placing at 70c presumably because they thought they could avoid the dilution but now they are much lower. They continue to claim they have other ways to raise the cash but let's face it they always say that. The worry is its raised in a private placing where we can't participate - smells like that right now to me TBH. Grrrr very irritating.