> http://www.investegate.co.uk/Article.aspx?id=200804020701443743R
http://www.imperialenergy.com
http://www.investegate.co.uk/Article.aspx?id=200807040700042799Y




Powered by IST's




Powered by IST's


img src="http://charts.moneyam.com/Chart.aspx?Provider=EODIntra&Code=IEC&Size=700&Skin=BlackBlue&Type=2&Scale=0&Span=YEAR1&MA=&EMA=&OVER=&IND=&XCycle=&XFormat=&Layout=2Line;Default;Price;HisDate&SV=0">
cyril

at one point the spread was 950 - 1000

It's not certain the takeover will go through.....!.

nothing is ever certain until the papers are signed ..... however, it is good to see that on 10th (only just reported) Credit Suisse bought a further 1m shares taking their holding to 4.04%

Well here's hoping, i guess somewhat a gamble regardless of prospects, even though i believe they are good, i have just bought a chunk at 909p and will hope the takeover goes ahead, have to admit seems strange to be at such a discount, but will hope that is just down to the falling price of oil and general market situation rather than worry that the deal might be scuppered...

I am still holding, but very strange that there is absolutely nothing about this on the ONGC website. Unless of course it is another company completely who is now putting off ONGC.
"Imperial currently pumps 7,000 barrels per day from its fields and the Kiev Eganskoye field came onstream in September 2008 to lift production to 25,000 bpd by year-end and 35,000 bpd by the end of 2009. It hopes to be cash positive by early 2010." The critical thing may be the future price of crude which has to be reflected in the offer price.

The problem you've got is if it doesn't go through then the sp will drop to 500-600p or maybe even 250-300p to bring it into line with the other oilers.

check out WSJ for this article just published "indias biggest exploration company, ONGC, has said the current financial crisis will not affect its plans to buy UKs Imperial Energy Plc for 1.4 billion", there is more that you can find in Business Standard http://www.business-standard.com/india/storypage.php?autono=337711&chkFlg= 'ONGC can fund OVL's Imperial acquisition'

Oil and Natural Gas Corporation (ONGC), the countrys largest oil producer, said it can fund the entire $2.8 billion for the acquisition of UK-listed Imperial Energy, even if it was not able to raise the $1 billion bridge loan.


We have enough liquidity to do two more such transactions, CMD R S Sharma said, adding the company is not dependent on the $1-billion bridge loan it was planning to take from Deutsche Bank for the buy.

The oil major had cash and bank deposits of Rs 16,000 crore (or around $3.3 billion) at the end of the March 2008. Deutsche Bank could not be immediately reached for comments.

ONGC Videsh, the companys overseas investment subsidiary, had in August agreed to buy Imperial Energy, which has oil fields in Russia and Kazakhsthan, for $2.8 billion. ONGC was to lend OVL $1.8 billion at a lower-than-market interest rate of 6 per cent, while another $1 billion was funded by Deustche Bank in the form of a bridge loan.

Any other cofirmation out there?

Interesting. Good bit of research TF.
At today's exchange rate of $1.73 & the current share price of 9.34, I reckon that IEC would cost ONGC approx $1.65bn + a few unknown add ons.
My very limited experience of bridging loans, is that they come at a crippling interest rate. I wouldn't be surprised to see the 12.50 target reduced in todays market.

i am sorry to say that i smell something fishy afoot ...... there has been no formal rns re progress, and the previous "informed source" reckoned the deal would be completed a week ago ..... it wasn't

You can bet that it probably will not be 1250p any longer....if I sell I lose out anyway.....!....stay in or drop out at a loss !...what a pain in the arse these markets are !.

i took a bath but better than drowning

Crumbs !...you have got me worried now...!.

not sure if it's relevant, but i see moscow market fell 14% and is suspended until tuesday

certainly, from my experiences with indian companies, the deal (and terms!) is not done until actually signed off ..... if by some chance ONGC do actually walk away, IEC will collapse, but surely a renegotiation of the price must be odds on

Taken a bath on most things....I did not get out of the markets in time...thinking I might as well stay in...perhaps not the best idea but then I'm joining the panickers...but then again with oil dropping like a stone !...to sum it up : blast it !.

If the price collapses, then I would presume the others (SINOPEC & EURASIAN) will be very happy to come calling. I have decided to hold, but may top up with a few more in order to get my average price down. Not dead in the water yet, imo.

quick about turn .... just managed to buy 1000 before dealing suspended

Russia govt clears first half of ONGC buy of Imperial

MOSCOW, Oct 24 (Reuters) - Russia's natural resources ministry said on Friday that Imperial Energy will be deemed non-strategic, removing the first of two hurdles for Indian state-run energy major ONGC to buy the company.

In late August, India's biggest oil producer agreed a takeover of the mid-sized, London-listed Russian oil producer for $2.6 billion, but for the deal to go ahead it must have no strategic assets, and the deal must then be approved by Russia's anti-trust watchdog, known as FAS.

'Imperial has no strategic fields or deposits, and we'll be sending this answer to FAS,' said a ministry official who declined to be named and would not say when.

Investors have been watching the outcome of the two approvals closely as the investment climate in Russia worsens. Russian stocks have lost almost 77 percent since their May 19 record high, and foreign capital is flooding out.

FAS said it was awaiting the ministry's answer, its spokesman Sergei Noskovich said on Friday.

He would not name a timeframe for FAS' decision, however, which would be in the form of a straight-forward approval allowing the deal to fully go ahead.

A well-connected investor in Imperial said the FAS approval will come and it will be 'sooner rather than later' when asked if the deal is expected to close before the end of this year.

Russian president Dmitry Medvedev is expected to go to New Delhi, where ONGC is headquartered, on Dec. 3, in what industry insiders believe will finally clinch the deal, though a Kremlin spokesman could not confirm the trip.

Imperial would not comment on the timing of the actual deal, and a spokeswoman said the firm is awaiting the FAS approval.

ONGC Videsh, the overseas arm of ONGC, would not comment on the deal but said it knew of no immediate plans for ONGC to meet with Russian officials.

Imperial, which owns a number of licences in the west Siberian region of Tomsk, hopes to produce 35,000 barrels per day (bpd) by the end of 2009 and 80,000 bpd by 2011.

i wonder if that rns came out earlier than intended.
would not be surprised if it was intended to be released just after london closed rather than just before

Still no confirmation of the final price though. Might be worth just keep trading these rather than hanging on for the final deal.

not such silly advice .... anyway, let's see where it opens on monday

re-reading the rns, 3rd December looks to be a key date, which of course is still some weeks off, as is actual completion - all being well