QGC - Queenland Gas Company

[grace]

Interesting turn of events with BG. They have a distinct advantage with the Pound v Aus $ plus the decreased value of QGC SP at the moment through no fault of QGC. You cant really blame BG for having a crack really.

Not so good for shareholders though as the BG holdings and agreements in place dictate that it would be very difficult for any other players to justify a tilt at QGc which for the holders means a lack of competition so dont count on too high an offer (insert a look of utter frustration icon here).

Talk seems to be around a $5.80 to $6.30 per share offer to AGL which in todays climate is a fair offer however it will look pretty lame in 12-18 months as the Curtis project nears fruition imo. What BG offer to QGC board and general shareholders is yet to be seen.

Should BG offer somethong north of $6 i will probably take it at the moment if it hits the table.

The alternative is that BG secures the AGL holding and leaves it at that for now (a lot less likely but you never know i guess).

Apparently the board are reviewing an offer for their personal stake if you can believe the press this afternoon which would suggest that the offer is more than decent to their minds (not necessarily ours of course).

All in all i am pleased that this offer will protect the QGC SP for a while and hope that it takes a long time to evolve so some sanity can come into this equation (need the management to take a very long term view here).

Good post here Abyss....actually, I'll be very cranky with Cottee if he lets QGC go (the Chairman has a big say with his very very large holding too).

This recession thing will come and go long before the gas runs out.

By the way, congratulations in October stock comp.....you'll win for sure!

 

[Dukey]

Mmmm - havn't had time to digest this news - but my current feeling is that this current economic downturn could take a long time to play out and come out the other side.... and it seems that fundamentals mean diddly squat just now ,.... so as good as QGC have been to me, I'd be mad not to seriously consider a decent offer...

- & maybe plug it back into another CSGer when the time is right - AOE, PES, BUL, AJL to name a few who'll be following in QGC's footsteps.
will be interesting to see the next announcement!

-d

 

[chops_a_must]

Good post here Abyss....actually, I'll be very cranky with Cottee if he lets QGC go (the Chairman has a big say with his very very large holding too).

This recession thing will come and go long before the gas runs out.

By the way, congratulations in October stock comp.....you'll win for sure!

One of the reasons I don't hold QGC is because of the management.

The AGL fiasco pissed me off, and said to me they were prepared to let the company go for less than its true worth.

 

[Dukey]

One of the reasons I don't hold QGC is because of the management.

The AGL fiasco pissed me off, and said to me they were prepared to let the company go for less than its true worth.

Apart from a couple of slip ups like wasting time and money chasing SGL - QGC management have impressed me as canny and relatively transparent. either way - all holders can do is wait and see...

 

[Tysonboss1]

Hopefully BG will offer a fair price north of $5.80 seems resonable.

They have been bitten already by a failed take over of origin, so hopefully they won't try low balling on a offer for qgc.

It will be interesting to watch this one tommorrow. when the trading halt is lifted.

 

[TheAbyss]

Well it looks like the offer will be at $5.75 a share based on the lone bidder for 848,178,345 at $5.75 a share.

 

[Eddyl]

The recommendation by the board goes to show that they aren't representing all shareholders interests. AGL will sell ut only if they can secure rights to local gas supply, BG says the merged company will benefit from having one owner.

There is no real benefit to the offer for other smaller shareholders, other than the premium to the current share price. There is no way you can own any interests in QGC other than owning BG, so you don't benefit from the synergies... nor are we getting the extra sweetner that AGL has acquired. Im very sour about this takeover and will not be accepting it until Im forced.

 

[prawn_86]

Im very sour about this takeover and will not be accepting it until Im forced.

Realistically small shareholders never get a say. AGL will sell their stake and a heap of other instos meaning all the piddly little 'nothing' holders (i am one of them in my investmets too) have no say.

If you really want a say you need to get mega bucks and take huge stakes...

 

[chops_a_must]

The recommendation by the board goes to show that they aren't representing all shareholders interests. AGL will sell ut only if they can secure rights to local gas supply, BG says the merged company will benefit from having one owner.

There is no real benefit to the offer for other smaller shareholders, other than the premium to the current share price. There is no way you can own any interests in QGC other than owning BG, so you don't benefit from the synergies... nor are we getting the extra sweetner that AGL has acquired. Im very sour about this takeover and will not be accepting it until Im forced.

Like I said above, I've been paranoid, and rightly so about the management of this company. It just proves it wasn't paranoia...

You'll see one Mr Cottee on the board of AGL before long without any doubt at all.

 

[laurie]

The recommendation by the board goes to show that they aren't representing all shareholders interests. AGL will sell ut only if they can secure rights to local gas supply, BG says the merged company will benefit from having one owner.

There is no real benefit to the offer for other smaller shareholders, other than the premium to the current share price. There is no way you can own any interests in QGC other than owning BG, so you don't benefit from the synergies... nor are we getting the extra sweetner that AGL has acquired. Im very sour about this takeover and will not be accepting it until Im forced.

yep totally agree with you the word that comes to mind is SHAFTED !! I also will hold on till forced to sell and we are also forced to pay brokerage

cheers laurie

 

[Sunburnt Land]

Geez you bunch are a hard lot to please! You wouldn't find me complaining if I logged into my portfolio one of these days and saw one of my holdings up 80% for the day!!!

 

[chops_a_must]

Geez you bunch are a hard lot to please! You wouldn't find me complaining if I logged into my portfolio one of these days and saw one of my holdings up 80% for the day!!!

You don't understand that these stocks really are going to be the next woodside.

And that their reserves can potentially have them earning an enormous amount for the next 30+ years.

And the deal doesn't reflect this IMO, as most still holding here in this sector are looking at it with these eyes.

 

[TheAbyss]

Precisely Chops. With more than 40,000 shares i am very happy to see the SP north of $5 again however i had a future target of +$10 and a dividend purely by the continual exploration and development works alongside a maturing CSG marketplace.

We are being offered less than the SP high of just a few months ago so i cant see any long term value association here. Short term it is a great offer and given there are no signs of the market turning around for a while yet this is a great thing unfolding.

Making the best of the situation i will leave the shares in my name, get a ML and look around for some investments as the market starts to improve (whenever that is).

In the interim there are a few other CSG plays that will entice a bidder or two sooner or later imo.

All is good but could have been so much better but who pays on what could have been? The offer on the table is very good in todays climate and very prudent on BG's side of the ledger.

 

[Tysonboss1]

You don't understand that these stocks really are going to be the next woodside.

Maybe It's a chance to sell at close to top $ and move the funds into AOE which is trading well off it's highs and is a similar company.

This is the first time one of my companies is the target of an "On Market" take over (in the past I have only had off market takeovers),

Does anyone know how long this sort of take over takes,.... will the offer just sit there indefiantly until finally they get 90% and compulsorly aquire the rest, or is there a time frame involved.

 

[Dukey]

Seems to me that some folks have lost sight of the fact that the boom-time is over.... gone... won't be back for some time... maybe long time... maybe very long time. Without something like this T/O - it could take years for QGC to get back to the recent highs - not because the company has done anything wrong - but simply because the market has changed.
So in effect this offer is a chance to cash in at close to the level of the recent s.p. high... which may not be seen again for a considerable time.... as such, I'm not unhappy about it at all...I'm thinking the only folk who could possibly be unhappy about it are those who bought in too late... or not at all??

Sentiment? well.... QGC has been good to me - I bought most of what I have at 25-35c so I'm more than happy. I'm stoked....but almost every up and coming shining light gets swallowed by a bigger shark sooner or later - IMO it was always going to happen. I'll miss QGC - but there are plenty of other fish who will be swimming in the wake of their rise, and I'll be watching for a good time to get in (more) on some of them.
The price?? - it could always be better - but in this market I'll be happy to take 5.75 rather than wait a year or more to see where the recession..(or even depression??) takes us.

QGC - I'm out.... "so long... and thanks for all the fish!"

-D

(all just my opinion of course - as are everyone elses... and no opinion is worth $$$ safe in the bank just now!!... IMO)

 

[grace]

Yep, Queensland Gas will soon be no longer.......after thinking a bit more about it today, who wouldn't be happy selling out, and buying some other depressed stock? Just means our cash goes further than it would have some time back. If only hey..........if only these good gas stocks didn't keep going offshore.....that's the bit I'm peeved about.

 

[Tysonboss1]

Yep, Queensland Gas will soon be no longer.......after thinking a bit more about it today, who wouldn't be happy selling out, and buying some other depressed stock? Just means our cash goes further than it would have some time back. If only hey..........if only these good gas stocks didn't keep going offshore.....that's the bit I'm peeved about.

I know what you mean, I don't really like the thought of qgc going overseas either, but It's a global economy.

What are the chances to of this stock not meeting the 90% compusory aquisition target, Does anyone have an estimate of the amount of the 777 million shares that are in the buy colum for $5.75 have to be bought to reach the 90% target.

 

[laurie]

Well I for one think that Shell now has to make a bid for Arrow because someone like BG can come in and steal it from them AND spare a thought for those SGL shareholders that rejected QGC T/O they are now .16c

cheers laurie

 

[Tysonboss1]

Well I for one think that Shell now has to make a bid for Arrow because someone like BG can come in and steal it from them AND spare a thought for those SGL shareholders that rejected QGC T/O they are now .16c

cheers laurie

I think Arrow is pretty safe with shell owning 30%,

Yeah I bet the sgl investors and directors are kicking them selves,

There is a few people placing orders for small parcels of QGC stock at more than $5.75, I can't see why they would be doing that with the risk they will be compulsorly aquired at a later date for $5.75, any idea what their stratergy could be.

 

[AnDy62]

This share haunts me ... two times I've come agonizingly close to buying it -

1. At 40c a few years ago
2. A week or so ago at 2.70

Oh the pain!
Impressive premium but then again sub-$3 didn't really represent fair value in most people's opinion...