(Sharecast News) - Tullow Oil tumbled on Tuesday after Kosmos Energy said it does not plan to make an offer for the oil and gas exploration company.
Kosmos did not provide any reasons for its decision, saying simply that it does not intend to make an offer "at this time".
Shares in Tullow surged last week after it confirmed it was in preliminary talks with Kosmos about a potential takeover.
Kosmos had until on 9 January 2025 to either announce a firm intention to make an offer or walk away.
At 1105 GMT, Tullow shares were down 8% at 21.44p. |
Could it be a short attack on bad news? |
Looks like this will go sub 20 |
"now they can get on with the job paying down the debt."
NPV(10) when they should be using NPV(20) is going to leave a debt principal repayment shortfall, not on the 2025s but on the 2026s. Equity value accretion, even if the accounts make it look like it is happening, is RD moon howling - that is why RD is leaving. Unfortunately, WShak and Loglorry have it right (buying the bonds); Bootycall has it wrong. JMV. PS. I am not knowledgeable enough to know if a fire sale of Lokichar will change my analysis.
PPS. Why have two directors (the CFO and the Non Exec) bought shares with real money? I cannot answer that. It seems madness to me. Why are 4 analysts rating this a strong buy? Again madness. Why is Stockopedia rating this a "neutral" investment style? I do not know; it should be "value trap". JMV. |
46% down ytd there must be something really wrong here, as allegedly we are in a better financial situation than we have been for years |
That offer may not have been serious but it may have been a smoke screen for another... |
Temporary halt on trading LSE |
Not surprised at all. I never thought it was a serious offer - how could it be made before the outcome of the International Arbitration Court is known. |
We don't know what happened but it could just have been a lot of nonsense instigated by Rahul in a vain attempt to protect his options? |
Best result, now they can get on with the job paying down the debt. |
Offer withdrawn |
Hi XX
Don,t think he will garner much sympathy if he loses his options given the share price performance during his tenure at Tullow.
As he has decided to leave perhaps he should not be party to any negotiations as he has a vested interest,he will do little for the private investor more likely whats best for himself.
Also the management need to communicate / Update the current position on each aspect of the company so that investors can make informed decisions.. |
The LTIP incentive plan says
"[Option] Awards are normally made on an annual basis and normally vest three years from grant subject to continued employment and the satisfaction of challenging three-year performance targets."
Not an expert but when Rahul leaves the company "subject to continued employment" suggests his options will be reduced in quantum on exit.
Whereas if a company is bought out then directors share options are usually preserved by some mechanism or other, or by hook or by crook?
Not a statement of fact. Just asking the Q. What do others think? |
Doubt it will happen.
KOS could be better advised to await a firesale of assets if finances at TLW become challenged - which looks possible. |
The $196mln after tax profit for H1 2024 perhaps? |
Looks like Kosmos has no appetite for the deal judging by the share price |
It was in the 60's and in a far worse position, I'm hoping for more |
30p would be a fire sale and I for one would vote NO!
PMO all over again IMHO |
Any mention on what they will pay per share for it? |
I’ll say 55p |
30p share offer would see the deal go through I reckon. |
forwood,
"With free cash flow around $150 to 200m, debt is manageable and likely repayable within 10 years (is there a plan for this?). Odd to be falling so much."
Odd to be falling so much? Not really, we do not have 10 years of P2 reserves to produce that sort of FCF (to firm? to equity?), more like 4 years, so buying off Wshak and Loglorry might not be cheap - why would they extend the redemption date on the 2026 Senior Secured Notes if they think they are not going to get their debt principal repaid in full? Any takeover terms will surely reflect this. |
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