ZEL - Z Energy.

[Jim]

How do you think about the 1H results ?

[winner69]

How do you think about the 1H results ?

Pretty solid in circumstances

H2 going to be OK

Share price should react +ly

[bull....]

margins were a little dis-appointing

[sb9]

Video Conf call was good, based on their commentary there's a very good chance for dividends to resume earlier that Oct21. I would say probably end of FY Mar 21, there could be dividend declared.

[bull....]

Video Conf call was good, based on their commentary there's a very good chance for dividends to resume earlier that Oct21. I would say probably end of FY Mar 21, there could be dividend declared.

lot of if between then and now . lockdowns , margins , competition etc etc probably have to reduce my expectation of a big div

[bottomfeeder]

Result not pleasing, but has it been factored into the SP already.

[Langara]

Macquarie has retained their $4 12 month price and estimating dividend at 30 cents. If that happens will certainly see big upside. Obviously a few potential variables out there at the moment.

[peat]

it expects to resume dividend payments after the first half of the 2022 financial year.

[Ahgong]

Can someone explain how Z's buyback works? Its letter to shareholders mention buying back 612,698 shares at $4,715612. Way above current market value. See letter below:

PROPOSED BUY-BACK OF SHARES

This document is provided to all shareholders in accordance with the requirements set out in section 62 of the Companies Act 1993 (Act).
Z Energy Limited (Z Energy) wishes to make an offer to Z Energy LTI Trustee Limited (the Trustee) to buy back up to 612,698 shares (the Forfeited Plan Shares) which the Trustee is holding and which have been forfeited by employees participating in Z Energy’s Restricted Share Long Term Incentive Plan (the Buyback).
The terms of the Buyback, which will be made under section 60(1)(b)(ii) of the Act (and in accordance with clause 23.2 of Z Energy’s constitution), are as follows:
Z Energy has entered into a Restricted Share Long Term Incentive Plan Put and Call Option Deed (the Deed) with the Trustee. Under the Deed, Z Energy can exercise a call option to require the Trustee to sell forfeited plan shares to Z Energy from time to time. Z Energy wishes to exercise that call option in relation to the Shares;
The Shares will be acquired by Z Energy and held as treasury stock; and the total consideration for the acquisition of the Shares will be $4,715,612 being the outstanding loan balance associated with those Shares, owed by the Trustee to Z Energy.
Board resolutions

To initiate the proposed Buy-back the Board of Z Energy resolved on 3 November 2020:

1. To make the offer to buy-back the Forfeited Plan Shares (Offer) at least 10 working days after a disclosure document has been sent to all shareholders in accordance with section 62 of the Companies Act 1993 (Act).
2. That the acquisition of the Forfeited Plan Shares under the Offer is in the best interests of Z Energy and of benefit to the remaining shareholders.
3. That the terms of the Offer and the consideration offered for the Forfeited Plan Shares are fair and reasonable to both Z Energy and the remaining shareholders.
4. That it is not aware of any information that will not be disclosed to shareholders:

4.1. which is material to an assessment of the value of the Forfeited Plan
Shares; and

4.2. as a result of which the terms of the Offer and consideration offered for
the Forfeited Plan Shares are unfair to the Trustee;
5. That on acquisition of the Forfeited Plan Shares, those shares are to be held by Z Energy as treasury stock
6. That the Board is satisfied that Z Energy will, immediately after acquiring the Forfeited Plan Shares, satisfy the solvency test applied under section 52 of the Act.

The grounds for the directors’ conclusions under the resolutions in paragraphs 2 to 4 above (inclusive) are:

1. the Offer will enable Z Energy to acquire and then transfer the Forfeited Plan Shares on-market without diluting the current shareholding; and
2. the consideration for the Forfeited Plan Shares is the outstanding loan balance associated with such Forfeited Plan Shares.
Interested directors
Julia Raue is “interested” (as that term is defined in section 139 of the Act) in Z Energy making the Offer, by virtue of being a director of each of Z Energy and the Trustee. The details of this interest have been entered into Z Energy’s interests register. However, none of the directors of the Z Energy has any “relevant interest” (as that term is defined in section 146 of the Act) in any of the Forfeited Plan Shares.

Yours faithfully,
Debra Blackett
General Counsel and Chief Governance Officer

[winner69]

Ahgong - it all comes down to this “ the consideration for the Forfeited Plan Shares is the outstanding loan balance associated with such Forfeited Plan Shares”

Sort of implies that they must have acquired Some at a higher price than today

Bit bod a messy housekeeping exercise that often happens in such schemes