Originally Posted by
JohnPagani
Hello Sharetraders.
Thanks for your comments. Eveeryone's entitled to a view - but you might consider that the NZO share price increased by 49% from Feb 16 to feb 17, and that was one of the strongest performance son the NZX among the companies that started with a mar cap over $150 million.
We will arrange for CEO Andrew Jefferies to join you in here for a Q+A after the Notice of Meeting is published later this month.
Couple of quick point to answer comments so far: Employee Share Options Scheme shares do not participate in the capital return - even the partly paid up shares do not participate. Since ESOP shares are issued at a premium of 20% to the current share price, most are not in the money; when they are sold, the employee gets back only the amount they have paid up. The capital return should not change the share price, as the proportion of shares issued to capital of the company remains constant. Therefore, while holders of ESOP shares are treated differently as a class, they should not be either advantaged or disadvantaged overall.
Some of you have expressed a view about the share price as a proportion of the company's NAV. The price paid for the cancelled shares has been set as a proportion of the market cap to the current number of shares on issue. It doesn't reflect NAV, except indirectly to the extent that the market cap reflects NAV.
The capital return is good capital management. The share price increased strongly when the return was announced, from under 50c to around 63c the day the Kupe transaction was announced. The stock continues to trade a discount to NAV - so the capital return allows you to capture 100% of NAV, without that discount over that part of the NAV returned, therefore creating a more efficient balance sheet.
I encourage you to continue to seek more information on this capital return. It's important to vote, and remember a 75% majority is required to approve the return.
If you have queries about how the capital return will work, you are welcome to call me on 021 570 872, preferably while I'm at home having my dinner ;-)
All the best
John Pagani
New Zealand Oil & Gas