One important point springs to mind…they’d be left with no production. How would that affect their full listing status? Unless I’m mistaken, listing on the main market requires income from production, otherwise a shift to AIM is on the cards….something of a non-consideration I’d have thought.
Interesting to compare Cairn in a similar situation who are planning to divest their only producing asset Cairn India, leaving them effectively a pure explo company, which Soco would also become. Cairn though are planning to retain a minimum 2.4% of Cairn India following their 51% to 60% disposal. Are they retaining that to maintain their listing status? Will Soco do similar, or are they more likely to sell the whole company?
Let the speculation begin….assuming above has some merit ;-)
I think this discussion is indeed absolutely pointless. The directors are not stupid; they are quite the opposite. They will get the best price they can at the right time. The point is, that time is not now.
Wrong - IMO
The bottom line is that the gap between what the Vn assets are worth now, and what they will be worth if Soco get a TGD extension and further prove up TGT, is far too great to do a deal now.
Leaving aside the issue of TGD (which is nevertheless potentially capable of being resolved to evryone's satisfaction, I now think), you are also wrong on this
The only pointers you will get to the timing of a sale is to find out when ee will be on holiday in the next few months. :^}
There is every chance that this will fit in as you would expect.... ;-)
The M&P bid is interesting - and is also not unexpected. Alphaville suggest the bid will be at €16 per share, which compares with €10.50 ish at year end....now c €13, after three weeks of speculation. I personally see virtually no read-across to SOCO from that, either way, and would suggest they are very very different companies and different assets.
ee
