ADI - Adelphi Energy

curryinahurry · 22 June 2010

Hi folks
First post. I have been following ADI thread for quite a while. Made good reading. However I think at times like this it may be wtime well spent to send some key events info to the likes of Terry McCrain c/o Herald sun and maybe ASIC (big assumption if they will understand!!) on the basis that on the face of it the Directors behaviour is rather strange and possibly self rewarding.

Disclosure - holder of small parcel of ADI shares
Cheers

jancha · 22 June 2010

estseon said:
Potchip,

the AWE appointed directors won't be looking after your interests if you stay invested and AWE has already signalled in its Bidder Statement that it may seek to de-list ADI's shares. Even if you can sell them over the counter or to AWE, the investment will be less liquid than it is as a fully listed security.

The ADI directors might have been able to secure loyalty and support in respect of more than 50% of the share capital in the hands of the public but, because of its 34% launchpad, AWE only need 25% of the outstanding shares. In a true democratic fashion, the takeover rules allow a minority to dictate to a majority. The rules should require AWE's votes on the launchpad shares to be disapplied until it acquires 50% of the outstanding shares.

There's nothing that can be done about the deficiency in the rules except to lobby the politicians. It won't help ADI.

I bought during the offer period, I did not sell. If less shareholders had sold, the directors might have concluded differently. Don't blame the directors for the actions of others over whom they have no control.

I don't see how it can be agentm's fault either. I have made a lot of money through listening to him.

Another one. Who is blaming Agentm for anything other than being bias to management?
Directors have helped AWEs quest imo.
Just look back at their CR & read their latest announcement & ask yourself if they could of handled it better?
You may have bought in at the right time but what of those who have been holding for years & having a base cost of 60-80c.
Im sure you would'nt be happy if you were one of those loyal holders who got screwed with the CR ect..

noco · 22 June 2010

Wish I had a crystal ball. Gonna hang in 'tll the death knock to see what happens. If no other offer is forth coming, then perhaps the only sensible thing left to do is to give in.

Agentm · 23 June 2010

Dear Sirs

ARC ENERGY Limited’s Takeover: Form 604 – Notice of Change of Interests of Substantial Holder ARC Energy Limited ABN 74 009 204 031 advises that its current substantial holding in Adelphi Energy Limited (ASX: ADI) increased on 22 June 2010 from 37.975% to 46.293%.

Please see the attached Form 604 for further details.

AngusSmart · 23 June 2010

Just read that one now agent.. looks like they have it. and will have it very easily! and once again nothing any of us could do about it! the ship was sinking a while ago, yet we were unaware of their intentions.

jancha · 23 June 2010

AngusSmart said:
Just read that one now agent.. looks like they have it. and will have it very easily! and once again nothing any of us could do about it! the ship was sinking a while ago, yet we were unaware of their intentions.

Yep looks like AWE only need around 4mil more to get over the line.
Oh well lets hope managements in EKA & AUT can look after the average share holders interests & not just their own.
ADI had the most posts on the ASF. R.I.P.

Kremmen · 23 June 2010

estseon said:
the AWE appointed directors won't be looking after your interests if you stay invested and AWE has already signalled in its Bidder Statement that it may seek to de-list ADI's shares.

This is only partly true. The directors will be looking after AWE's interests, but if they have, say, 80% of the company, those interests (making profits) are mostly aligned with ours.

If they want to de-list, won't they need compulsory acquisition? That would require 90% and the longer they leave it, the less likely that 42c would be considered a reasonable price.

potchip · 23 June 2010

Kremmen said:
This is only partly true. The directors will be looking after AWE's interests, but if they have, say, 80% of the company, those interests (making profits) are mostly aligned with ours.

If they want to de-list, won't they need compulsory acquisition? That would require 90% and the longer they leave it, the less likely that 42c would be considered a reasonable price.

Precisely. 50% and delisting is totally different. If anything AWE's statement achieved their aim to cause some panic amongst some investors to sell now. As I stated previously this is not a hostile takeover where the market value of a company is < than the market value of assets of a company, but the takeover happens due to debt issues. In that case there will be destruction of value due to asset sales. ADI's valuation is not based on tangible assets. AWE still need to complete the job to get what they paid for. How can AWE bled ADI dry? By voting to dispose of the land leases so AWE can pay the rent? LOL. Don't forget prior to the bid market valued ADI at 29c/s. If I am a short term holder, I get my return off the year, so what's the compliant? If I was a long term holder circa 07, I don't see why I would sell now.

Btw to see whether AWE achieve their target today, just monitor the queue to see if the buy-order decreases by a further 3.4 or so mil..

Disclosure, I don't hold ADI, not anymore anyway. And I consider myself one of those short-term quick buck guys, precisely the type some on this thread is hating on yet are ironically of the same mentality (ie oh my turn $0.1 to $1 scheme didn't quite work out but I made 0.3 per share I guess I need to complain about management not doing their job) If you are consider selling now, you were never in for the long haul anyway amiright?

estseon · 23 June 2010

Kremmen said:
This is only partly true. The directors will be looking after AWE's interests, but if they have, say, 80% of the company, those interests (making profits) are mostly aligned with ours.

If they want to de-list, won't they need compulsory acquisition? That would require 90% and the longer they leave it, the less likely that 42c would be considered a reasonable price.

Read the bidder's offer (first) and the ADI directors' advice re the final offer.

Those wanting to hold for CGT purposes might find that they can do so for a few months regardless.

Those expecting to participate in any future value of the company may be disappointed.

I sold out yesterday for UK CGT reasons .

noco · 23 June 2010

At close of trading today as per ComSec, there were:-

8 buyers for 88,085,261 units and 41 sellers for 2,149,982 ranging from 42c to 60c.

Can anyone explain the ramifications on this variation between buyers and sellers?
Are the sellers still hopeful of attaining a higher price or are they being super optimists?

Kremmen · 23 June 2010

estseon said:
Read the bidder's offer (first) and the ADI directors' advice re the final offer.

And what do you suggest I'll find there that has any relevance to my comment? The directors are bailing because they won't have control any more. (diddums)

Those expecting to participate in any future value of the company may or may not be disappointed. We don't know what will happen yet. (I think we'll have a better idea once the FY is over.)

Kremmen · 23 June 2010

noco said:
Can anyone explain the ramifications on this variation between buyers and sellers?
Are the sellers still hopeful of attaining a higher price or are they being super optimists?

The AWE buy order at 42c is big enough to consume every share on issue, so buyers below 42c are plain stupid and/or wasting their time.

The sellers above 42c are hoping that someone will buy from them at higher than the takeover offer. I guess they are working on the theory that it worked last time. ... or that's there's one born every day.

Hatchy · 23 June 2010

I sent off an email to Alex to clarify a point that bothered me. Decided to share:

what could be the outcome of AWE not getting to 90% from here:
• A company can be delisted on its request if the ASX agrees. The ASX has discretion and we understand regards itself as having a duty not to deprive shareholders of a market for their shares.
• So without AWE getting to 90% it is very unlikely that the company can be delisted. ASX may be prepared to allow de-listing if the minority shareholders agree. If Adelphi was to be de-listed, it will no longer be traded on ASX and becomes a private company.

Cheers
Hatchy

prgudula · 24 June 2010

ARC ENERGY Limited’s Takeover: Form 604 – Notice of Change of Interests of Substantial Holder

ARC Energy Limited ABN 74 009 204 031 advises that its current substantial holding in Adelphi Energy Limited (ASX: ADI) increased on 23 June 2010 from 46.293% to 48.962%.

Please see the attached Form 604 for further details.

nioka · 24 June 2010

Kremmen said:
The sellers above 42c are hoping that someone will buy from them at higher than the takeover offer. I guess they are working on the theory that it worked last time. ... or that's there's one born every day.

I control over 1,000,000 shares and am not one of the sellers. ADI is worth more than 42c. I wont be robbed without a fight. I'll see them in court if necessary. Maybe I was the one born that day but I hope there are enough of us born on different days with a fighting spirit.

adobee · 24 June 2010

I am fully out this morning and wont waste any more time on it.. the directors are out.. awe will block anyone else.. what else is there to wait for .. I am moving into AUT & EKA I think this is where all the interest will no be headed..

philly · 24 June 2010

nioka said:
I control over 1,000,000 shares and am not one of the sellers. ADI is worth more than 42c. I wont be robbed without a fight. I'll see them in court if necessary. Maybe I was the one born that day but I hope there are enough of us born on different days with a fighting spirit.

Hey Nokia, I'm still holding and I agree this ain't over yet. AWE will get their 50% but they need 90% before they can force me to sell.

adobee said:
I am fully out this morning and wont waste any more time on it.. the directors are out.. awe will block anyone else.. what else is there to wait for .. I am moving into AUT & EKA I think this is where all the interest will no be headed..

Hey adobee don't take issue with what you have done and AUT & EKA do give us the opportunity to stay with the Sugarloaf.

Maybe I'm dreaming but what if someone [like HILCORP already committed to the EagleFord and cashed up after the deal with KK&R] made AWE an offer so good they couldn't refuse? I reckon they would sell out in a blink. And so would I at the right price which is a lot more than this crappy offer of 42cents.

jancha · 24 June 2010

philly said:
Hey Nokia, I'm still holding and I agree this ain't over yet. AWE will get their 50% but they need 90% before they can force me to sell.

Hey adobee don't take issue with what you have done and AUT & EKA do give us the opportunity to stay with the Sugarloaf.

Maybe I'm dreaming but what if someone [like HILCORP already committed to the EagleFord and cashed up after the deal with KK&R] made AWE an offer so good they couldn't refuse? I reckon they would sell out in a blink. And so would I at the right price which is a lot more than this crappy offer of 42cents.

Philly you could have a point there.
Huntleys recommendation on AWE is a buy ( they got that part wrong so far) but as to the reasons why they are interested in taking ADI are
A. To gain experience in the Shale gas for their Perth Basin interests or to repackage ADI & sell it at a better price.
Only holding a small parcel of them now.

Agentm · 24 June 2010

jancha said:
Philly you could have a point there.
Huntleys recommendation on AWE is a buy ( they got that part wrong so far) but as to the reasons why they are interested in taking ADI are
A. To gain experience in the Shale gas for their Perth Basin interests or to repackage ADI & sell it at a better price.
Only holding a small parcel of them now.

awe is performing pretty bad atm

7.5 mill exit today and the sp is screwed

huge exit for sure there and in one big hurry

Agentm · 24 June 2010

Pioneer Natural Resources Co. (PXD: News ) announced it has signed joint venture deal with U.S. subsidiary of Reliance Industries Ltd. Closing is expected within five business days.

Under deal, Pioneer will sell 45% interest in about 212,000 net acres leased by the company in Eagle Ford Shale play for $1.15 billion. Reliance will pay $266 million in cash to Pioneer and will pay an additional $879 million to carry Pioneer's share of future drilling costs.

Reliance has also entered into joint venture deal with Pioneer's existing partner in Eagle Ford Shale play, Newpek LLC, for about $210 million. Under deal, Reliance acquires 95,300 net acres of leasehold held by Pioneer.

In addition to funding drilling obligations, Reliance has agreed to fund 75% of Pioneer's portion of drilling costs until the $879 million of drilling carry is fully utilized. Pioneer and Reliance have agreed to joint venture development plan which forecasts drilling of 26 horizontal Eagle Ford Shale wells during June through December 2010, increasing to 70 wells in 2011, 120 wells in 2012 and 140 wells in 2013.

Based on joint venture development plan, Pioneer's net production in Eagle Ford Shale is expected to increase from an average of 2,000 barrels oil equivalent per day or BOEPD in 2010 to a range of 32,000 BOEPD to 41,000 BOEPD in 2013. With the addition of ramp up in Eagle Ford Shale drilling, the company now expects production growth over this same period to be 15+% per year.

ADI - Adelphi Energy

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