FLEX BoD Against Takeover Bid

[Tree]

FLEX BoD Against Geveran Offer

Board of Directors of Flex LNG issued a statement regarding the mandatory offer from Geveran Trading to acquire all shares in the company not already owned by Grveran.

“The Board decided to advise its shareholders not to accept the offer, which was priced at NOK 8.00 per share, as it finds that the offer is below the company’s asset value estimates,” Flex said in a statement.

Flex board has evaluated the terms of the offer and obtained a fairness opinion from Arctic Securities as advisor to the board.

“The Offer Price is below what the Board considers to be the historical average acquisition premium in public cash offers in the Norwegian market,” according to the statement.

On the other hand, statement notes that the trading prices of the company’s shares before the offer was announced on 22 October  have been below the offer price, at times significantly below.

Based on an overall assessment, Flex LNG board concluded that the offer price is at the very low end of what it considers to be the fair market value of the company and the board has concluded not to recommend that the company’s shareholders with a long-term investment horizon accept the offer.

Flex LNG board did add that this offer represents a liquidity event for shareholders looking to monetize their position in the company.

1 Norwegian krone = 0.140292 USD

[davidhmtk]

FLEX BoD Against Geveran Offer

Board of Directors of Flex LNG issued a statement regarding the mandatory offer from Geveran Trading to acquire all shares in the company not already owned by Grveran.

“The Board decided to advise its shareholders not to accept the offer, which was priced at NOK 8.00 per share, as it finds that the offer is below the company’s asset value estimates,” Flex said in a statement.

Flex board has evaluated the terms of the offer and obtained a fairness opinion from Arctic Securities as advisor to the board.

“The Offer Price is below what the Board considers to be the historical average acquisition premium in public cash offers in the Norwegian market,” according to the statement.

On the other hand, statement notes that the trading prices of the company’s shares before the offer was announced on 22 October  have been below the offer price, at times significantly below.

Based on an overall assessment, Flex LNG board concluded that the offer price is at the very low end of what it considers to be the fair market value of the company and the board has concluded not to recommend that the company’s shareholders with a long-term investment horizon accept the offer.

Flex LNG board did add that this offer represents a liquidity event for shareholders looking to monetize their position in the company.

1 Norwegian krone = 0.140292 USD

Today's trading in IOC - heavy selling, with 3 times more calls bought than puts.  Not typical.  See Jan '75s. $85, where have I heard that number before?

[jft310]

David
What event could drive the stock price that much higher in Jan 2015 ?.or are they playing a change in stock price direction?.
My wild guesses are below
Arbitration victory??
Bobcat results positive ??
Ant 4 results positive ??
Oil price recovery ??
Must be other possibilities ?..

[davidhmtk]

David What event could drive the stock price that much higher in Jan 2015 ?.or are they playing a change in stock price direction?. My wild guesses are below Arbitration victory?? Bobcat results positive ?? Ant 4 results positive ?? Oil price recovery ?? Must be other possibilities ?..

Remember the article our largest shareholder  had published during an earlier dip in the share price? ( Qwest, $85 )?  One possibility is that he is going to make an offer.

[jft310]

He might and that would put a floor under the price .
I would be shocked if the BOD accepted such a low ball price .
Finding hydrocarbons at RBW as we have with the extent still unknown does confirm the geology model though. Which means the BOD would want to wait to see the size of the new assets .
Add to that the Laurie Brown revealed seismic slide 11 which clearly shows better seismics with the statement on top of the slide for appraisal purposes and his written statement about higher estimates makes one think the buy outs not gonna happen .

[davidhmtk]

He might and that would put a floor under the price . I would be shocked if the BOD accepted such a low ball price . Finding hydrocarbons at RBW as we have with the extent still unknown does confirm the geology model though. Which means the BOD would want to wait to see the size of the new assets . Add to that the Laurie Brown revealed seismic slide 11 which clearly shows better seismics with the statement on top of the slide for appraisal purposes and his written statement about higher estimates makes one think the buy outs not gonna happen .

JFT - I'm not at all sure that yesterday's trading was the second day of the beginning of a takeover.  I do know that if the BOD rejecting a bid that is in line with the amended bylaw guidelines ( principally, that all shareholders be treated equally ) , the takeover would look remarkably like this one of Flex ( why I used this topic ) and the BOD's PR could be copied from the Flex board's PR.

[jft310]

Interoil has a poison pill. Pretty defensive to a hostile takeover . Why would the BOD sell before better defining the assets ?... As time goes on they prove out more assets . Today Bobcat a discovery . Proving out assets has a price multiples higher than Undrilled , unproved assets .
Their stated strategy is find assets , monetize them and then find more assets.
Why would we be getting a new Board member with a sell out on the horizon???
As we approach the Total payment the stock price will anticipate . My opinion.