Anything out there?

We are well into January and still nothing new (or old) to discuss?


  • Premier oil bond and shares suspended this morning pending an announcement. A reverse takeover has been mentioned.

    Yes, no-one knows what this means yet, there are a lot of cheap assets for sale at the moment.. should be clarified shortly.
  • how will the bond react?
  • I don't have a position, but I would sit tight... it might be good news... need to look at what exactly the deal is.
  • The PMO bond is suspended as well. You'd hope it would be positive news. Surely, some re-financing is in order? You'd think that if the oil price collapse is not halted soon, Enquest will either go bang soonish or do some similar deal.
  • Statement Regarding Suspension of Shares

    13 Jan 2016

    At the request of the Company, Premier’s ordinary shares have been suspended from trading on the London Stock Exchange with effect from 7.30am this morning pending an announcement of a potential acquisition of assets by Premier which may be classified as a reverse takeover under the FCA Listing Rules. Therefore, the Company has requested the temporary suspension of trading in its ordinary shares whilst clarification is sought from the UKLA.

    A further update will be provided shortly.
  • A reverse takeover or reverse merger takeover (reverse IPO) is the acquisition of a public company by a private company so that the private company can bypass the lengthy and complex process of going public. The transaction typically requires reorganization of capitalization of the acquiring company.
  • From the Times

    Don't you love an optimist? At a time when some are predicting that the price of oil could fall to $10 a barrel, a third of its current level, Premier Oil is placing a huge bet on the sector. The shares were suspended this morning pending an acquisition and the deal has yet to be formally announced, but it appears the company is in talks to buy the substantial North Sea assets owned by the huge German utility Eon.

    Eon has a spread of assets there, and the purchase is a huge and complex one for Premier. Other deals have suggested that while some are getting out of the North Sea, others are buying in. If you believe those dire warnings of $10 a barrel are overly pessimistic, now is a good time to be buying cheap assets.

    You might even see it as a one-way bet. If oil does fall that low, the implications for the world economy are so dire that I suspect we will have other things to worry about than whether Premier made the right call in January 2016.
  • Shotgun: why would the consequences of $10 oil be dire for the world economy since it is largely due to oversupply rather than lack of demand (demand is increasing). Any company not in the oil extraction sector will be cheering. Ok, it might have a perverse depressing effect on stock markets and that might result in a generalised loss of confidence: is that how you see it?
  • It's good news for many things, but it's a reflection of weak global demand.
  • Thanks for the link
  • They appear to be putting themselves in a better position.
  • did anybody listen in to the conference call
  • i listened in to the call, and mightily impressed I was too. But to be fair i'm not impartial as I hold the 2020 bonds.
  • edited January 2016
  • Realise that bond markets are getting less liquid, with no supply on ORB horizon. However, that does not excuse 4 1/4 point bid offer spread on many bonds there, e.g. Tesco 6% 2029. Even if you get a bit inside that, they are still horribly wide, market makers need to keep up with their elevated lifestyle, after all.
    Also, why have some bond issuers bought back their shares at toppy levels , wasting scarce resources when it was hardly rocket science that markets were due for a fall? Paragon and IPF are case in point. Why not buy back their debt below par instead? Could it be that directors' bonus depends on short term share price performance, never mind the longer term health of the balance sheet, let alone investment returns of their bond buyers?
  • I made that point some while back. With Selftrade you can buy and sell online and also put in limit orders. The reported trades may give an indication on what levels you should put your limit orders in at.

    With youinvest, although you can't deal online, they charge the equivalent online dealing charge. You can put in fill or kill orders with them. e.g. Tesco 97.75 - 101.35 bid/offer displayed. Trades indicate a fill or kill buy order at ca. 101.00 or marginally less might be met. The order is either filled or killed when the trade is submitted (one submission).

    With Barclays, there's no online dealing and a telephone trade costs ca £55!
  • Premier Oil, now trading, PMO1 up massively, happy for the Bond Holders, ENQ1 up a bit in sympathy.
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