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Buy-back

lse:sle

#1

Any thoughts on the buy-back offer?


#2

Yes… i think all Aim company’s who think there shares are undervalued and being manipulated down should do this .


#3

I’m abroad and SLE have managed to introduce a bug so I cannot log into my account so far this week.

Anyone with SLE shares held with ii received a copy of the tender document or any buyback associated corporate action? There was nothing up to Friday.

I can’t find anything on the SLE website about the details of the tender process either - not in terms of actually filling out a form to apply.

Appreciate any help.


#4

No pep action listed in my ii account yet
TP


#5

Sorry, no CORP ACTION listed in my ii acc yet


#6

Now it’s there. Just got email from II
TP


#7

I have to submit instructions today. I’ll just sell 10%.


#8

Optimistic?
TP


#9

Hopeful. If Tosca don’t participate that suggests they may have good reason to feel 46p is undervaluing the company. If they do participate I’d not have been able to sell all my shares anyway.

Are you putting more into the tender?


#10

I have two tranches of shares in two accounts.

1 is my old shares that are now -94% down after the recent share price rise. I aren’t selling any of those for now.

2 is a tranche bought under 30p and I am attempting to sell all of those. I’ve never seen such a tender process before (to do with a buyback), I always assumed I’d be selling this tranche in the open market.

If I only get 10% sold and I have to sell the rest in the open market AND the share price stays above @38p or more I don’t mind selling them in the open market. They were only bought for a short-term trade which was supposed to be completed by Xmas. I should have known SLE would never hit a deadline, even so making 30% in 6 months is OK business.

Normally, if a dividend or return of cash to shareholders is paid ($30m in this case, but done in a strange way), you’d expect the share price to fall by a commensurate amount. I have no idea what will happen in this case.

What I don’t want to happen is end up with an ever shrinking amount stretched out with buyback payments over years (I don’t trust SLE not to screw up over an extended period of time despite the agreement containing the promise to repay the monies).


#11

The uncertainty about what will happen to the sp immediately post buyback had me contemplating tendering more/all of my shares and then buying some or all back again at less than 46p


#12

That is certainly a plan. The upside is that this will only be the first of many (we hope) and so once we see how it reacts there should be ample opportunity to cash in later, given any possibility to do so.

I expect the share price will remain higher once (IF) SLE finally do pay some money back to shareholders. That will be a momentus day and the markets may well mark up SLE stock in future on the back of that.


#13

I took part in a similar process with HSTN all went smoothly. I’ve submitted a proportion of mine ( much more than 10% but I couldn’t resist keeping some in case the sp takes off or there is a further buy back. I’ll be keeping a close eye on the sp now positive cash flow has been established. But there still a few loose ends to tie up before SLE becomes properly investable
TP


#14

There has to be further buybacks by the terms of the 2016 OML 18 agreement. Its just that we all know SLE and the fact they have never actually delivered on anything at all previously.

If all goes according to agreement, this $30m is only around 20% of the amount to be re-paid, and that doesn’t include any earnings the company makes, this is purely interest paid on a loan to an intermediary … and it all gets very complicated after that.

The monies that were owed have been coming in and are almost all now paid, so there is no reason as it stands that there wont be further buybacks. of course, Tosca could decide to change the terms and reinvest that cash or some such thing, so I would advise all to tread very lightly.


#15

EGM today, we’ll soon know whether Tosca participated. As the qualifying date is 20 March I wonder if they will sit on the results until then?


#16

so much for that idea

Resolution passed


#17

We find out the results in a week in terms of the payout. The payout itself is a week after that.

Fingers crossed.


#18

349m proxy votes in favour (so Tosca must have voted to allow the buy-back). No mention of non-proxy votes, if any, made at the meeting. No mention of any votes against. We’ll find out later this week whether Tosca sold any of their stake.


#19

Hmm, I think Tosca just wants retail investors out and they think 46p will do it. So is still creeping up towards that figure so worth hanging on to some to see where it goes after the dust settles
TP


#20

I’ve hardly been taking any notice of this stock for a while and not fully abrest of what’s going on, so I have some research to do. Surely taking them up on their buy-back offer wasn’t worth it given the recent price gains?