Sibir Energy Share Discussion Threads

[gatdecor] 27/5/2009 15:43

Sale of Sibir Shares to JSC Gazprom Neft

20-5.-27.0

The Board of Sibir announced on 22 May 2009 that arrangements were in place which would allow 10,559,704 existing issued ordinary shares of 10p each in the capital of Sibir (the "Share(s)") to be sold and the proceeds received by the Company applied in reduction of the debts owed by Mr Chalva Tchigirinski to Sibir. It was also announced that the Shares would be offered for sale to JSC Gazprom Neft at £5.00 per Share. The Board is pleased to announce that the offer was accepted and that the Shares have now been sold to JSC Gazprom Neft for a total consideration of £52,589,197.08 net of costs. Following settlement, which is anticipated to take place on Thursday 28 May 2009, the net proceeds will be applied in reduction of Mr Tchigirinski's debts to the Company.

[kibes] 27/5/2009 13:10

yf23_1 - I am amazed we are getting 500p actually, this went as low as 39p only a month or so before the suspension. There is a long history of minority shareholders getting totally screwed in Russia. The whole basis of the company was that because Chigirinsky was seen as a good Russian partner minority shareholders would be looked after. When he lost control what did you think would happen? Small shareholders became vulnerable to the sort of normal dirty tricks that are played in Russia, for example the secret issuing of shares such as happened with Sibir's Yugraneft holding. That hasn't happened and we are lucky to get out with shirts still on our backs in my opinion. As for the City Code on Takeovers, regulations for listing on AIM etc why would Russians give a toss?

Good work dougie 471! I wish I had bought some at 39p. Even a little dabble of £3900 would now be worth £50,000.

[willessa] 27/5/2009 09:41

From Telegraph - note the sentence about averting disaster for PI's. That's why I am glad to get this at £5.




Gazprom offers escape route for Sibir investors
Hundreds of private investors caught up in the corporate governance scandal at Aim-listed Sibir Energy have been offered a partial reprieve by Gazprom, the Russian state-controlled gas company.

By Helia Ebrahimi
Last Updated: 12:29AM BST 27 May 2009

Sibir Energy shareholders have been offered a partial reprieve by Gazprom Photo: GETTY IMAGES
Shareholders are being offered 500p a share for their investments in the Siberian oil-field operator, valuing the company at £1.9bn. The UK-listed company's shares have been suspended since a corporate governance scandal broke in February.

Gazprom had already bought up much of the remaining stake held by institutional investors, including Blackrock and M&G, by the close of trading last Friday as it increased its stake from 16pc to 27.5pc.


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Equity group 3i plans £700m rights issueOver the weekend Sibir and its advisers, Strand Partners and JP Morgan Cazenove, agreed a deal which secured the offer for small shareholders. The deal gives Gazprom a waiver on normal UK takeover rules requiring it to make a full approach for their holdings.

A source close to the situation said that the eleventh-hour agreement had "averted a disaster for minority shareholders", who are believed to own just over 5pc of the company. The rest of Sibir's shares are thought to be owned by Russian investors.

However, despite the huge premium to the 174¾p suspension price, the deal still falls short of last June's trading peak of 814p and saw investors angry at the demise of what was once the biggest company listed on Aim.

Sibir's shares have not traded since its founder Henry Cameron stepped down and was later dismissed over controversial "unauthorised payments" relating to property deals with Chalva Tchigirinski, a major shareholder in the company.

It emerged Mr Tchigirinski had borrowed $325m (£203m) from Sibir, rather than $115m originally disclosed. He sold real estate assets to the company in return for the money, but that deal later fell apart and Sibir is now suing the oligarch to return the cash he received.

Sibir has been able to pay down $80m of the outstanding debt after an additional shareholding held by Mr Tchigirinski was uncovered by advisers and sold to Gazprom.

When the scandal first broke, commentators cited it as an example of the sometimes dangerous and erratic nature of doing business in Russia. Major energy giants such as BP have been hit by political machinations in the country which have affected their business.

The success of Sibir meant it had become an example for a raft of Russian oil, gas and mining companies which used the lightly regulated Aim market to raise funds.

Gazprom's offer, made through its Neft oil arm, has been recommended by the board of Sibir, which is due to report annual results on Friday.

Neft bought 16pc of Sibir in April after trumping rival TNK-BP, which had offered to buy the company in a £2.3bn deal last year.

Sibir produces oil at the Salym field in western Siberia in a joint venture with Shell and operates a refinery in Moscow alongside Neft. If investors take up Gazprom's offer for their holdings, the deal would give Gazprom's operation control of the 200,000 barrels per day produced through the refinery.

Mr Tchigirinski is understood to have fled Russia.

[dougie471] 27/5/2009 09:36

I think if we are getting £5 a share we are doing well and agre with squinty. I am making over a £100k and only only bought 5 minutes before close on the eve of suspension so consider myself very lucky. When this is delisted and only a small number of pis remain noone at sibir is going to give a monkeys bout usnand then when you need to sell to raise some money for another great investment how are you going to proceed? Ive already told my broker Im out!

[squintyflinty] 27/5/2009 09:32

Those steps were being taken before Gazprom decided to take out PI's.At the end of the day,if PI's decide to invest in a company that's drilling for oil in Russia , they are stepping into a mine field. Most Pi's will have done well from this offer that is currently on the table.Accept it and move on.

[yf23_1] 27/5/2009 00:32

I definitely think they need to elucidate on this statement with an RNS.

"the Board is currently pursuing steps to achieve the restoration of
trading in the Company's shares on AIM at the earliest opportunity"

exactly what steps ?

[yf23_1] 27/5/2009 00:27

As I read it, Gazpromneft have to put the offer document forward by that date as part of the Framework agreement (they want to do it this way because it avoids them abiding by the City Code on Takeovers and Mergers (the "City Code")).

Quite which points of the Takeover code are being bypassed and for what reasons are not made clear (well, you don't really think they'd tell you !).

Its just the start date for their plan.

Sort of like this scenario....

If you don't sell me your house for half price I will put a bomb under your house and blow it up.

I don't believe you, you would lose the house if you blow it up.
That's OK, I just want the land.
So at this stage you know the land is valuable so you can look for another buyer who wants the land.

Well actually the bomb is already there and its on a timer which started and ends in 21 days. Its already ticking, I have no control over it now. Its not up to me, its up to you.

[davidwilkin] 26/5/2009 21:13

cheers yf, £5 quite enough for me, mine only stand me at £1.50 per share, i couldnt have made that much in another stock (i always take profits too early)
The 28th is not a critical date then ??

[yf23_1] 26/5/2009 21:03

Think about it, they supposedly put an offer out to institutions at £4.50 then £5 and also testing the waters for PI in the process.
They found not many were interested at less than £5, so now they officially stamp a £5 offer at PI's.
It would seem they can get 51% on the cheap by intimidating PIs whilst shares are suspended (they have 27.5%, but we don't know how much of this is from Baisarov, 17% from Institutions before and 10.5% from last offer (was any Baisarov's ???)).
They need another 23.5%, so if Mr B sells what will they have ?
51% or less ?
Their talk of wanting less than 30%, does that mean they don't intend to buy from Mr. B ?
I thought that was a done deal ?

[yf23_1] 26/5/2009 20:50

As I read it, the offer doc will be out by 28th and you have up to 21 days to accept it.
What happens if you have accepted offer and then a higher offer comes in ?

I think you still are deemed to have accepted original offer as its not all or nothing. So best to wait a while, if you're online you could accept via your broker by electronic/tele means, so don't have to wait for post.

[davidwilkin] 26/5/2009 20:31

sorry to ask again but what is the significance of the 28th May, do we not have until the 17th June to make our minds up, i for 1 am keen to sell for £5 and are still a bit scared that iii dont do anything about it, i havnt had an e-mail to vote yet, does that e-mail need to be sent before the 28th of this month or not ??. Anyone else feeling the same OR had some contact from there broker (mine are in a nominee acct) Regards DW

[cleantrader] 26/5/2009 18:01

I am not sure the situation is obvious to you. When Gazprom acquire these shares they will get to a point when less than 10% of the share capital base is owned by minority shareholders. The remaining big shareholders will deal between themselves and then they have no obligation to relist and can screw the remaining shareholders out of their shares. People have no choice but to accept the £5 whether they like it or not.

[josels] 26/5/2009 17:57

If the pay £5 is because is worth much more.
Now, lets wait and see whether we have a better offer.
In the mid time, I wish I would do as well in the rest of my portfollio.

[dougie471] 26/5/2009 16:25

sorry i should rephrase regarding stuffed i mean we effectively have a gun to our head. This company is worth £7-£8 but £5 is a very good price. I was buying in from 90p and had in mind £3+ so i will be very happy when its all settled

[willessa] 26/5/2009 16:12

I never thought of trebling my money as being stuffed.

If this had never of got suspended I would probably sold out at £2.

For me this has turned out as a major bit of luck.

[dougie471] 26/5/2009 15:49

there is no chance of a counter bid coming in. Outsiders dont want to get involved in Russian politics unless they have connections in the Kremlin. I think we are all stuffed in this one. Its a big risk not accepting the offer and waiting until after the 22nd August, they could just let other small pis rot and youve no chance of getting money for your shares

[thumper1] 26/5/2009 14:46

hi davron thanks for the reply I myself was in sey before the colapse of the share price, my question to you what is the future of the company , plus yes been in and out of griffin mining but the spead is stopping me at the momment.

[yf23_1] 26/5/2009 14:38

Ha, ha, the suspension of a share is supposed to stop erroneous price trading.
In this case it is doing exactly the opposite.

[yf23_1] 26/5/2009 14:31

And this is why the shares should be unsuspended immediately, because then another company could pay in the market to get a stake and thus force Gazpromneft to raise and then could sell their stake at a profit, so there is no risk on their part.
Its called a free market, Duh.

What this is, is manipulation and threats from your own management who are supposed to be working for you.

£5 ? The shareprice was over £7 a while back before the Mr T debacle, which we will now get our money back on.

I would call £7-8 fair.

[davron8] 26/5/2009 14:25

Thumper, yes I still have a smallish holding in SEY and somewhat more in Victoria Oil. Bought both at the same time I think as I did SBE.I do have a few speculative shares like SET & Vict but never more than £5000 in each. It's great when one does come good but there are time when you have to write some off against the big sucesses. It sounds strange now but it was meeting Mr Cameron over the years at AGM's etc that gave me the confidence to invest heavily into SBE. The dour Scot looked very solid and trustworthy and even now I'd like to hear his side of what happened. Still I have a nice fat profit to thank him for.

[stevest2] 26/5/2009 14:17

yf23-1

The best analysis of the situation i have read - why is this share suspended -they have done a deal with MR T and have a draft auditors report - let the market dictate the price!

This is nothing but a stitch up - the board cannot be recommending that this company is only worth £5 a share - it was worth that 4 years ago!

[tommya] 26/5/2009 13:22

I will probbaly do as willessa, i.e. hold out for a week or so to see if any counterbids come in. We have until 17th June to accept the £5 offer; after that it's anybody's guess what will happen. Sibir have said that they will not recommend any counterbid for at least 5 days, thereby allowing Gazprom to come up with a matching bid, which the Sibir board will support.

Hard to think who else might be in the frame. TNK-BP had their fingers burnt when offering £4.30 and subsequently withdrew. I can't see Rosneft or any other Russian firm bidding: it would effectively be the Russian govt bidding against itself. No chance of an American firm getting in there which just leaves the Chinese - again an unlikely scenario.

[bhartijantaparty] 26/5/2009 12:29

I will reject that without a doubt :)

[kibes] 26/5/2009 12:28

£5 is not a bad price for the current market. A good result really. I shall accept it.