By Steve Moore | Monday 21 November 2016
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Having listed just over a year ago at 5p per share citing “market conditions present compelling opportunities to acquire a cash generative oil & gas company with strong upside potential”, Senterra Energy (SEN) was in May “pleased to inform shareholders” of a prospective deal with… “a sim-card technology business based in Singapore” (Oasis Smart Sim PTE Ltd)! Now we have a “Termination of Acquisition, Restoration of Listing” announcement.
This states that the intended deal has been terminated by the other party – and despite Senterra attempting to reassure that “the directors believe that there continues to be other attractive businesses and technologies available for acquisition. The board believes that a replacement transaction will be found and hopes to be in a position to update shareholders in the near future”, shares in the company are currently more than 40% lower on their return to the market at circa 2.5p.
At least a loan referred to in the initial announcement wasn’t made, though the market I refer to above is the standard listing segment of London's main market.
The developments to May saw Senterra in as player-manager in Cynical Bear’s Sub-Standard Shockers XI at 4.25p. As befits such a role, no information is provided on why “Oasis have chosen to withdraw from the transaction at this late stage” (2 days short of 6 months after the initial announcement!).
With this sort of stuff even guarded against on AIM, my guess is Senterra has just firmed up its driving force role in the Sub-Standard Shockers XI ahead of Cynical Bear’s update on the team later this week.
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