Sibir Energy Share Discussion Threads

[eug] 03/12/2008 14:26

Miamisteve, correct, the sensible way would be to buy the shares and cancel them, however that means the voting and control of power that Mr T has reduces and he did not want that. Personally I think that people like that should be thrown out. Seems that anyone in the directorship of a company can do what they want. Same goes for banks in the UK, they are all struggling but the top boys still want their bonuses. For what, stuffing a company up. Go figure

[abcd1234] 03/12/2008 14:25

yup...Langbar

[ningram] 03/12/2008 14:22

And what is to stop them doing something like this again, that leads to another problem, sentiment towards the company after this could take years to improve, if ever. Next thing a name change for a new disguise? Any suggestions?

[499budgie] 03/12/2008 14:22

dark mafia prevails within Russia and it will always be that way..

[miamisteve] 03/12/2008 14:18

They look like they are commiting to a further $140m of capex for the real estate development.

Personally feel this has been handled terribly. Sibir should've been buying Mr. T's shares and canceling them to preserve his quota. The share price would've settled at £1.50.

[nametrade] 03/12/2008 13:53

ADFVN states they have an EPS of 82.5 ...twice the current price!

[coco] 03/12/2008 13:48

This could also force a bid for the oil assets before the property purchases are concluded - think about it.

[soulsauce] 03/12/2008 13:42

Ningram exactly.

Eric the drop is not finished. This is going sub 30p, it's a travesty.

[eric76] 03/12/2008 13:40

What this co's done is pretty bad, won't it hit the papers tomorrow and give another big drop then too?

[ningram] 03/12/2008 13:38

Sorry but this is a good example of why to stay out of anything that is heavily invested in East Europian countries. I wouldn't buy even at this price. Taking on another companies debt in these conditions????

[spectoacc] 03/12/2008 13:37

Safman - thanks for that. I partic liked:

"The company said it will nevertheless have to spend $128m on limited development and studies of some of the projects, including New Holland and Passage in St Petersburg, thus taking the sum of Sibir's support to $625m."

They could also have pointed out that this may not even be the end of the "assets" that SBE buys. (I think it makes more sense to think of them taking on "liabilities").

[bomfin] 03/12/2008 13:36

Could part of the deal be that he has to become a minority shareholder?

Perhaps it's some of his shares that are being flogged?

[cyberpost] 03/12/2008 13:25

Looks like the seller has submitted a buy order of 242k @ 35p to make the buy side look strong and so entice buyers to buy his stock.

[safman] 03/12/2008 13:17

Sibir plunges on planned property deal
Moscow, December 3 – The market value of London-listed Sibir Energy halved on Wednesday after the Russian oil group said it would buy more distressed real estate assets from its key owner for $340m in cash and debt.

Sibir had already outraged minority shareholders when it said in October it would buy some $157m worth of real estate from its key owner, Russian businessman Shalva Chigirinsky, in a clear departure from its core oil business.

EDITOR'S CHOICE
Analysis: Close to the wind - Oct-24Aim-listed sector hit by poor fundraising - Nov-17The new deal foresees the purchase of various real estate assets including Russia Tower, a 600m steel-and-glass symbol of new Russian wealth designed by Norman Foster to be Europe's tallest building, which was halted last month due to a lack of funding.

"This is a corporate scandal of the first class," said Carl Merling, chief executive of Swedish hedge fund Emeralt Investments, which has a big exposure to Russia but holds no Sibir shares.

"It is difficult in such a situation not to be negative towards Russian small caps with majority owners like Mr Chigirinsky. When such things happen there is no mechanism for minority shareholders to protect their rights," he said.

Sibir asked the shareholders to approve the purchase of additional real estate assets from Mr Chigirinsky, at a general meeting on December. 18.

"Difficult times call for uncomfortable decisions to be made," Sibir chief executive Henry Cameron said in a statement. "Doing business in Russia has never been for the faint-hearted and sometimes requires difficult calls in the boardroom," he added.

The company said the global financial crisis and consequential drop in share values have had "a domino effect" on Mr Chigirinsky's financial position.

Mr Chigirinsky and his partner Igor Kesayev control 47 per cent of Sibir and the government of Moscow owns another 18 per cent.

The company produces oil in west Siberia and has a refinery and a petrol station network in Moscow.

Most of the projects that Sibir will acquire from Mr Chigirinsky have been put on ice like many other real estate developments in Russia. Heavily indebted developers have been among the worst hit by the global liquidity squeeze.

The company said it will nevertheless have to spend $128m on limited development and studies of some of the projects, including New Holland and Passage in St Petersburg, thus taking the sum of Sibir's support to $625m.

Sibir had a net profit of $238.5m in the first half of 2008.

Sibir has earlier denied reports that Mr Chigirinsky and Mr Kesayev could lose their stakes in the company after local media reported the businessmen were facing margin calls after putting their stakes in Sibir as collateral against bank loans.

"As the preservation of the company's shareholder structure was paramount, the board of Sibir has concluded that the company must take over the bulk of Mr Tchigirinski's remaining real estate business," the company said on Wednesday.

Sibir said in a separate statement its finance director and member of the board, Alexander Betsky, resigned on Tuesday.

At 1050 GMT, Sibir was trading at 45.025p, down 55 per cent on the day.

saffy..

[499budgie] 03/12/2008 13:10

big sell orders in..this will get hammered from here...majors getting out..Freshly f@cked PI's buying stock..

[pineapple1] 03/12/2008 13:09

yes you certainly need a greedy local investor when dealing with russians if you want to grease the wheels of commerce.

[499budgie] 03/12/2008 13:08

the black gold is still running the show....

[vizz] 03/12/2008 13:07

Disagreeable as all this obviously is for SBE shareholders, a political fact of reality is that a company in Russia without an Oligarch as a major shareholder, is at risk of a takeover by the authorities - Wild West in the East!

[bomfin] 03/12/2008 13:00

As for Henry.

I wonder how he sleeps at night! Not because he's done anything wrong but being mixed up with this lot must be scary!!

[bomfin] 03/12/2008 12:58

My only surprise is that the property folio didn't include chateau blood sucker in transylvania.

[dorset64] 03/12/2008 12:57

40p support still there, needsto hold but buys now out numbering sells at that level.

[bomfin] 03/12/2008 12:56

If he'd flogged his holding he wouldn't be able to pull this stunt!

Having said that 2nd half profits will challenge first half profits and together they're going to be way above what they are paying for the property portfolio from hell.

Interesting punt at this level. IMHO DYOR

[pineapple1] 03/12/2008 12:54

Sibir had a net profit of $238.5 million in the first half of 2008.
Sibir has earlier denied reports that Chigirinsky and Kesayev could lose
their stakes in the company after local media reported the businessmen were
facing margin calls after putting their stakes in Sibir as collateral against
bank loans.