Essar,anyone explain this???

ess0two

http://uk.reuters.com/article/2014/02/14/uk-essarenergy-offer-idUKBREA1D1K720140214


Can any explain this in laymans terms,i own a few k of these at under £3,plus various share options,salary sacrifice each month ranging from £2.70 to £0.60p to date.


Got a feeling im gonna get stiffed big time?

Ifts

From what I can tell the majority owners Essar Global Fund Limited (EGFL) the investment vehicle of the Rui family are wanting to buyout Essar Energy's minority shareholders.

What price they are willing to pay for the minority stake is anyones guess but as a stab in the dark I would say it will be under the £1 mark (70-100p).

There was a ~10% spike in its SP today (closed at 66p) but 'ShareCast News' is stating that todays rise is due to the fact Essar Energy announced that all main units have resumed operation at its UK refinery.

Got a feeling I'm gonna get stiffed big time?

Could have been worst, spare a thought for those who bought at the time of the IPO @ 420p four years ago (SP did go up to 590p at the end of 2010 but has generally been falling since to where it is now).

Since Essar Energy's IPO there have been a number of different approaches EGFL have toyed with regarding their majority stake in Essar Energy but they have not materialised so there is no guarantee that its latest move would lead to an offer being made.

planteria

owning shares in a company that is to be taken private is usually 'good news'.. but it depends upon the price your bought in at, or, in your case, the 'cost' to you. i hope it works out ok. and you will certainly be getting some certainty if the takeover proceeds as they intend.

Ifts

owning shares in a company that is to be taken private is usually 'good news'..

Good news for the majority shareholders who want to take it private.

Owning shares in a company that is takeover target by another company (a competitor etc) is usually good news as it attracts a healthy premium to the closing SP when the takeover announcement is made.

As for Essar Energy - it listed in 2010 at 410p and now Essar Global Fund Limited (EGFL - who already own 78 per cent of the firm) are considering an offer at a 'modest premium' to its closing price of 60p on Thursday night.

EGFL have until 5pm on March 14 to make a firm offer or walk away (what was said when they made a statement to the stock market).

ess0two

Thanks for replies...


I can recover all monthly costs paid into shares,less tax and NI.


The rest I'm stuffed,i work for Essar and the Ruia brothers aint got a clue,or have well and truly headworked the stock market,fingers burnt to some extent.

planteria

don't say too much ess0two..

Ifts wrote: »

Good news for the majority shareholders who want to take it private.

Owning shares in a company that is takeover target by another company (a competitor etc) is usually good news as it attracts a healthy premium to the closing SP when the takeover announcement is made.

it depends. for example, a lot of us did very well from Manchester United shares as the Glazer's were buying them up and then took them private. a friend of mine owned 1% of ManUtd for a brief time...and did extremely well out of the privatisation.

planteria

ess0two wrote: »

I can recover all monthly costs paid into shares,less tax and NI.

The rest I'm stuffed,i work for Essar and the Ruia brothers aint got a clue,or have well and truly headworked the stock market,fingers burnt to some extent.

i don't really understand. you will get back your investment? how?

ess0two

planteria wrote: »

i don't really understand. you will get back your investment? how?

I buy £125 worth of shares each month,but don't pay tax or NI on the purchase,after 5 yrs can take the shares tax free etc.


Found out today,i can 'cash in' contributions to date,minus tax and NI,all done thru Barclays.

planteria

i see, so you can get your investment back..but have to give back the tax you have saved?

anyone else here familiar with what is happening?

if i were you i wouldnt read up as much as you possibly can, and really understand what is happening and what your options are. might they actually finish up buying employees shares back at a better price? or might employees even be able to retain a stake?

ess0two

planteria wrote: »

i see, so you can get your investment back..but have to give back the tax you have saved?

anyone else here familiar with what is happening?

if i were you i wouldnt read up as much as you possibly can, and really understand what is happening and what your options are. might they actually finish up buying employees shares back at a better price? or might employees even be able to retain a stake?

Sorry didn't explain it very good...find out more next week probably.


Be interesting see what they do with the refinery,as Barclays own the crude and finished product.

planteria

ok, good luck. by all means keep us informed. but don't say anything on here, or elsewhere on the internet, that might get you into trouble.