Monday, 22 December 2014

The bolt on: Afren Gossip

There's gossip that Afren will be offered 0.85 Seplat shares for every 1 Afren circa 102 pence currently. That would be significantly above my value in the current market but perhaps reflecting the discovery? Atb Fraser

It would be wise to add a caveat of investing purely on gossip isn't a bright idea! Or should the term be gamblin on gossip!

1 comment:

  1. Fraser- wow, that does seem to be v generous in the circumstances. SEPL have had a flier today (up 20% plus) and their share price had spiralled in a v similar fashion to AFR's putting them on a likely yield of circa 6.5% and a PE of close to 2.5 before todays news, so they seem to be the main beneficiary so far.

    I can see an all share (despite the $500m that SEPL have in cash) so I agree with that, as it also gives both sets of shareholders good upside potential but that ratio does look a bit too attractive to be true. SEPL also have some Shell assets to pick over too, so I can see them looking for a harder bargain here.

    Back to some strangely addictive mulled wine.... oh dear, I may join your Jan 2015 detox in due course :-))

    Cheers. The Leggie

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