Market Report: RusPetro pays the price for bond flop - Sharewatch - Business - The Independent

Market Report: RusPetro pays the price for bond flop

Investors in RusPetro must have felt like they had been sent to Siberia when the oil explorer's shares crashed to their lowest-ever level. Siberian-focused RusPetro, which listed in London last January when it raised $250m (£160m), has not been able to raise finance via a proposed $350m bond issue and has now postponed the sale.

The shares plunged by as much as 50 per cent during trading and finished the day down more than 15 per cent – an 8p fall to 43p.

Investors were still shuddering after news last month that production growth had been slower than anticipated. RusPetro chose to push out this key piece of information after the market had closed back on 4 January.

Its $350m bond issue was supposed to pay back a loan from Sberbank, and an outstanding loan from shareholder Limolines Transport was going to be converted into new shares.

The small-cap explorer, which counts Vladimir Putin's ex-deputy chief of staff Kirill Androsov and the chairman of Oleg Deripaska's EuroSibEnergo, Andrey Likhachev, as backers who own just under 30 per cent, said it will "consider recommencing the offering at a later date".

The Sberbank loan facility will mature in April 2015. RusPetro also said it will postpone its extraordinary general meeting to approve its fundraising that had been planned for 18 February.

Raising money is tough out there, particularly for small oil explorers, but one outfit which did manage to get some funding away was AIM-listed Victoria Oil and Gas. It placed shares priced at 1.6p to raise £23.4m for its Logbaba gas and condensate project in Cameroon.

Victoria now thinks it is fully funded to meet its "long-term corporate objectives, to monetise the Logbaba gas discovery and to meet its production target for 2013". It also stressed it did not plan to raise further equity.

The shares are now at an all-time low, and lost 0.42p to 1.64p. But traders thought that the group had turned a corner. Macquarie Capital resigned, leaving Fox Davies Capital as sole broker.

After a dip during afternoon trade, the benchmark index recovered some poise and added 12.58 points to 6,295.34. Punters were still willing to overlook bad eurozone news and the outlook was broadly upbeat.

The Kazakh miner Enrc, which reported that fourth-quarter iron ore and ferrochrome output was up, added 31.4p to 375.6p, taking it toward the top of the leaderboard. It was also the subject of re-heated bid rumours.

Traders also spread rumours of corporate activity at the mid-cap interdealer broker Tullett Prebon and the shares added 20.9p to 272.5p.

But it was Flybe's shares that really took off as it agreed a deal with Ryanair's Michael O'Leary to help him in his third takeover attempt of the Irish airline Aer Lingus. Flybe soared 9.25p to 54p on news of the plans to create Flybe Ireland with Ryanair. If Ryanair's bid goes ahead, Flybe will pay Ryanair £865,000 for 43 European routes and around nine planes as well as flight crew and staff, while Ryanair will put up €100m (£86m) for the venture.

The arrangement is part of Mr O'Leary's endeavour to gain European Commission approval for his £600m Aer Lingus takeover bid. A smooth landing for the bid is far from assured. The European Commission will make a decision on competition issues on 6 March.

Investec's experts think that the deal "is in keeping with Flybe's long-standing strategy of expanding in a low-risk way to create a European network. If this goes ahead, we'd expect a material increase in the share price". Investec gave Flybe a hold rating and a 68p share price target.

But Flybe's chairman and chief executive, Jim French, played down the chances, and said: "Before Flybe Ireland can come into being, there are many hurdles to overcome, not least the European Commission accepting the remedies offered by Ryanair… and then the shareholders of Aer Lingus accepting an offer from Ryanair."

The gaming software maker Playtech got a boost from analysts at Deutsche Bank ahead of its fourth-quarter results today. Deutsche rates the stock a buy and raised its share-price target from 470p to 550p. The shares fluttered up 0.9p to 481.5p.

The small-cap oil services specialist Lamprell has won a new Singapore contract and its shares jetted up by 8.75p to 143.75p.

News
Paper trail: the wedding photograph found in the rubble after 9/11 – it took Elizabeth Keefe 13 years to find the people in it
newsWho are the people in this photo? It took Elizabeth Stringer Keefe 13 years to find out
Arts and Entertainment
Evil eye: Douglas Adams in 'mad genius' pose
booksNew biography sheds light on comic genius of Douglas Adams
Sport
FootballFull debuts don't come much more stylish than those on show here
News
i100
PROMOTED VIDEO
Life and Style
Kim Kardashian drawn backlash over her sexy swimsuit selfie, called 'disgusting' and 'nasty'
fashionCritics say magazine only pays attention to fashion trends among rich, white women
Arts and Entertainment
TVShows like Agents of S.H.I.E.L.D are little more than marketing tools
Arts and Entertainment
Hit the roof: hot-tub cinema east London
architectureFrom pools to football pitches, rooftop living is looking up
Travel
travel
News
The ecological reconstruction of Ikrandraco avatar is shown in this illustration courtesy of Chuang Zhao. Scientists on September 11, 2014 announced the discovery of fossils in China of a type of flying reptile called a pterosaur that lived 120 millions years ago and so closely resembled those creatures from the 2009 film, Avatar that they named it after them.
SCIENCE
Life and Style
tech
News
ebooksAn unforgettable anthology of contemporary reportage
Arts and Entertainment
Matisse: The Cut-Outs exhibition attracted 562,000 visitors to the Tate Modern from April to September
art
Life and Style
Models walk the runway at the Tom Ford show during London Fashion Week Spring Summer 2015
fashionLondon Fashion Week 2014
News
Kenny G
news
News
peopleThe black actress has claimed police mistook her for a prostitute when she kissed her white husband
Life and Style
techIndian model comes with cricket scores baked in
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

SQL Developer - Watford/NW London - £280 - £320 p/d - 6 months

£280 - £320 per day: Ashdown Group: The Ashdown Group have been engaged by a l...

Senior BA - Insurance **URGENT**

£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...

Training Coordinator / Resource Planner - City, London

£35000 - £38000 per annum + Benefits: Ashdown Group: Training Coordinator / Pl...

Data Governance Manager (Solvency II) – Contract – Up to £450 daily rate, 6 month (may go Permanent)

£400 - £450 Per Day: Clearwater People Solutions Ltd: We are currently looking...

Day In a Page

Mystery of the Ground Zero wedding photo

A shot in the dark

Mystery of the wedding photo from Ground Zero
His life, the universe and everything

His life, the universe and everything

New biography sheds light on comic genius of Douglas Adams
Save us from small screen superheroes

Save us from small screen superheroes

Shows like Agents of S.H.I.E.L.D are little more than marketing tools
Reach for the skies

Reach for the skies

From pools to football pitches, rooftop living is looking up
These are the 12 best hotel spas in the UK

12 best hotel spas in the UK

Some hotels go all out on facilities; others stand out for the sheer quality of treatments
These Iranian-controlled Shia militias used to specialise in killing American soldiers. Now they are fighting Isis, backed up by US airstrikes

Widespread fear of Isis is producing strange bedfellows

Iranian-controlled Shia militias that used to kill American soldiers are now fighting Isis, helped by US airstrikes
Topshop goes part Athena poster, part last spring Prada

Topshop goes part Athena poster, part last spring Prada

Shoppers don't come to Topshop for the unique
How to make a Lego masterpiece

How to make a Lego masterpiece

Toy breaks out of the nursery and heads for the gallery
Meet the ‘Endies’ – city dwellers who are too poor to have fun

Meet the ‘Endies’ – city dwellers who are too poor to have fun

Urbanites are cursed with an acronym pointing to Employed but No Disposable Income or Savings
Paisley’s decision to make peace with IRA enemies might remind the Arabs of Sadat

Ian Paisley’s decision to make peace with his IRA enemies

His Save Ulster from Sodomy campaign would surely have been supported by many a Sunni imam
'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

Exclusive extract from Janis Winehouse's poignant new memoir
Is this the role to win Cumberbatch an Oscar?

Is this the role to win Cumberbatch an Oscar?

The Imitation Game, film review
England and Roy Hodgson take a joint step towards redemption in Basel

England and Hodgson take a joint step towards redemption

Welbeck double puts England on the road to Euro 2016
Relatives fight over Vivian Maier’s rare photos

Relatives fight over Vivian Maier’s rare photos

Pictures removed from public view as courts decide ownership
‘Fashion has to be fun. It’s a big business, not a cure for cancer’

‘Fashion has to be fun. It’s a big business, not a cure for cancer’

Donatella Versace at New York Fashion Week