Anyone holding Dragon Oil?

Grawns

Majority shareholder takeover bid in action, just wondering if anyone else were holding these shares. I stand to make a nice profit but had planned to hold these long term. Will probably reinvest in renwable energy unless some other oil stock looks like value.
link

Comordha

Don't sell. I think there's a slim chance it will be blocked. And if it does go ahead you will get your money anyway. If you feel you are being robbed, use your voice and vote 'No'. See here for more info -

http://www.iii.co.uk/investment/detail?code=cotn:DGO.L&display=discussion

Grawns

Have been following the discussio nthere too. Won't be selling and will be voting no. Just thinking to the future if ENOC get away with it. Lots of mentions of Afren on same thread. Guess I better start doing my homework.

PcAngel

I too bought Dragon Shares last summer and have held onto them.

"Under the terms of the Acquisition, Dragon Oil Shareholders other than ENOC will be entitled to receive: 455 pence in cash for every Dragon Oil Share"
Does this mean we get 455 onto the current share value or they are simply valued at just 455p.
Thanks!

Raskolnikov

PcAngel wrote: »

I too bought Dragon Shares last summer and have held onto them.

"Under the terms of the Acquisition, Dragon Oil Shareholders other than ENOC will be entitled to receive: 455 pence in cash for every Dragon Oil Share"
Does this mean we get 455 onto the current share value or they are simply valued at just 455p.
Thanks!

ENOC wish to purchase all outstanding shares of Dragon Oil that they currently do not hold. They have looked at the company and decided that £4.55 is a fair offer for outstanding shares. If you accept their offer, you will be paid £4.55 for each share you own, you will then cease to have an interest in Dragon Oil.

Given that ENOC already control over 50% of the outstanding shares, I personally can't see them increasing their offer.

PcAngel

Thank you for your reply. Hard to know what to do! I only have 6.3% profit made having paid commission, stamp duty etc.

Comordha

HOLD, you are still going to get the £4.55 anyway

Comordha

And the fun starts -

Largest Dragon Oil Minority Shareholder Rejects ENOC Bid

LONDON (Dow Jones)--The largest minority shareholder in Dublin-listed Dragon Oil PLC (DRS.DB) has rejected a takeover offer from Emirates National Oil Company, saying it materially undervalues the Turkmenistan oil producer, according to a statement published on its Web site Tuesday.

"Over the past decade, the company has delivered very strong oil production growth which we believe should be sustained for a number of years to come," said the statement from investment management firm Baillie Gifford. "We would encourage management to continue its successful growth strategy and progress its proposed restructuring and application for primary listing on the London Stock Exchange."

ENOC already owns 51.5% of Dragon Oil and is offering 455 pence a share in cash for the remaining shares. The offer represents a 35% premium to the share price the day before the bid and values the whole company at $2.357 billion.

Dragon Oil's principal asset is the Cheleken contract area, in Turkmenistan's Caspian Sea section. The contract area, operated and 100% owned by the company, contained proven and probable reserves of 645 million barrels of oil and contingent gas resources of 3.2 trillion cubic feet, as of June 2008

lucky-colm

so why would you take 4.55 when the share is currently trading for 4.84

or is this a stupid question

Comordha

The 4.55 is the £ price, which is now down to £4.38 following this announcement. A rejection of the offer will most likely lead to a medium term falloff in the share price after which we are back to basics, finding oil & producing oil and watching the share price rise all the way to £8 +

Comordha

Check this out - http://www.savedragon.com/

Comordha

Further information, taken from Bloxham Stockbrokers Morning Note -

The proposed takeover of Dragon Oil by Enoc suffered a setback in recent days as the deal has upset a number of shareholders. Firstly, Bailie Gifford, Dragon’s second largest shareholder with a 4.2% cent stake said the deal understated the fundamental and strategic value of the company and would vote against the takeover deal. Noster capital a hedge-fund with a smaller 0.12% stake called Enoc’s move opportunistic and inadequate.

• Shareholders representing 75 per cent of Dragon’s shares not owned by Enoc must vote in favour of the takeover for the deal to go ahead. These developments do open up the possibility of an improved offer. However, with many shareholders unhappy and a 75% shareholder approval required, the takeover may take longer to be completed than originally suspected.

Comordha

The vote will take place this Friday. Very exciting. I think ENOC are going to get it in the a**. It's gonna be close though.

http://www.savedragon.com/

Raskolnikov

On the face of it, Dragon Oil is starting to look like a slot machine with a free pull. You can buy now and if the ENOC tender offer succeeds, you get your money back. However, if the tender offer fails, you may get an extra 10-30% on your investment.

Comordha

Exactly why some of the larger investors have been increasing their holdings

Comordha

Bid rejected, happy days, now lets move towards true value - €10

cooperguy

Comordha wrote: »

Bid rejected, happy days, now lets move towards true value - €10

Just wondering why people on this thread have such high valuations on where the share price should be? Are you telling me I should be investing

david....

hello i have 3 grand put away to invest in shares.

i was thinking of dragon oil , united drug or ryan air or something like that.
i am looking for a safe investment that will increase steadily over the next year or 2.
the banks are also cheap at the moment at 1.20 but i dont really trust them too much

any other suggestions ???:D

Raskolnikov

cooperguy wrote: »

Just wondering why people on this thread have such high valuations on where the share price should be?

Probably off the top of their heads.

The people at savedragon.com have come up with a fair value of £8 a share. Considering where these oil and gas reserves are, that seems a little optimistic to me. You've also got to remember that instead of waiting 5-10 years for your returns, a buy-out will give you those returns today, so it's unrealistic to expect full economic value for the reserves.

€7 would seem fair to me.

daveirl

This post has been deleted.

Grawns

Raskolnikov wrote: »

Probably off the top of their heads.

The people at savedragon.com have come up with a fair value of £8 a share. Considering where these oil and gas reserves are, that seems a little optimistic to me. You've also got to remember that instead of waiting 5-10 years for your returns, a buy-out will give you those returns today, so it's unrealistic to expect full economic value for the reserves.

€7 would seem fair to me.

Happy days for all holding dragon, now above €7 and rising! I was lucky enough to take a punt at €1.59 4 years ago. As this was my 1st and only investment I don't know what to do but hold tight.

Grawns

Grawns wrote: »

Happy days for all holding dragon, now above €7 and rising! I was lucky enough to take a punt at €1.59 4 years ago. As this was my 1st and only investment I don't know what to do but hold tight.

Well it's the end of the line. Sad to see the company taken private but can't complain as to the excellent ROI.