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
Mickey Rourke celebrates his victory against opponent Elliot Seymour
people
News
Gordon and Tana Ramsay arrive at the High Court, London
newsTV chef gives evidence against his father-in-law in court case
News
Actor Burt Reynolds last year
people
News
people

Watch the spoof Thanksgiving segment filmed for Live!
PROMOTED VIDEO
News
The data shows that the number of “unlawfully” large infant classes has doubled in the last 12 months alone
i100Mike Stuchbery, a teacher in Great Yarmouth, said he received abuse
Arts and Entertainment
The starship in Star Wars: The Force Awakens
filmsThe first glimpse of JJ Abrams' new film has been released online
Arts and Entertainment
The cover of The Guest Cat – expect to see it everywhere
books
News
i100 Charity collates series of videos that show acts of kindness to animals
News
ebooksNow available in paperback
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

Austen Lloyd: Company Secretary

Excellent Package: Austen Lloyd: EAST ANGLIA - SENIOR SOLICITOR LEVEL ROLE** -...

Citifocus Ltd: German Speaking Client Specialist

£Attractive Package: Citifocus Ltd: Prestigious asset management house seeks a...

Citifocus Ltd: Performance & Risk Oversight

£Negotiable: Citifocus Ltd: This is a varied role focusing on the firm's mutua...

h2 Recruit Ltd: Sales Director - SaaS (SME/Channel) - £140,000 OTE

£90000 - £140000 per annum + benefits: h2 Recruit Ltd: Are you a high achievin...

Day In a Page

Homeless Veterans Christmas Appeal: ‘We give them hope. They come to us when no one else can help’

Christmas Appeal

Meet the charity giving homeless veterans hope – and who they turn to when no one else can help
Should doctors and patients learn to plan humane, happier endings rather than trying to prolong life?

Is it always right to try to prolong life?

Most of us would prefer to die in our own beds, with our families beside us. But, as a GP, Margaret McCartney sees too many end their days in a medicalised battle
Thomas Cook's outgoing boss Harriet Green got by on four hours sleep a night - is that what it takes for women to get to the top?

What does it take for women to get to the top?

Thomas Cook's outgoing boss Harriet Green got by on four hours sleep a night and told women they had to do more if they wanted to get on
Christmas jumper craze: Inside the UK factory behind this year's multicultural must-have

Knitting pretty: British Christmas Jumpers

Simmy Richman visits Jack Masters, the company behind this year's multicultural must-have
French chefs have launched a campaign to end violence in kitchens - should British restaurants follow suit?

French chefs campaign against bullying

A group of top chefs signed a manifesto against violence in kitchens following the sacking of a chef at a Paris restaurant for scalding his kitchen assistant with a white-hot spoon
Radio 4 to broadcast 10-hour War and Peace on New Year's Day as Controller warns of cuts

Just what you need on a New Year hangover...

Radio 4 to broadcast 10-hour adaptation of War and Peace on first day of 2015
Cuba set to stage its first US musical in 50 years

Cuba to stage first US musical in 50 years

Claire Allfree finds out if the new production of Rent will hit the right note in Havana
Christmas 2014: 10 best educational toys

Learn and play: 10 best educational toys

Of course you want them to have fun, but even better if they can learn at the same time
Paul Scholes column: I like Brendan Rodgers as a manager but Liverpool seem to be going backwards not forwards this season

Paul Scholes column

I like Brendan Rodgers as a manager but Liverpool seem to be going backwards not forwards this season
Lewis Moody column: Stuart Lancaster has made all the right calls – now England must deliver

Lewis Moody: Lancaster has made all the right calls – now England must deliver

So what must the red-rose do differently? They have to take the points on offer 
Cameron, Miliband and Clegg join forces for Homeless Veterans campaign

Cameron, Miliband and Clegg join forces for Homeless Veterans campaign

It's in all our interests to look after servicemen and women who fall on hard times, say party leaders
Millionaire Sol Campbell wades into wealthy backlash against Labour's mansion tax

Sol Campbell cries foul at Labour's mansion tax

The former England defender joins Myleene Klass, Griff Rhys Jones and Melvyn Bragg in criticising proposals
Nicolas Sarkozy returns: The ex-President is preparing to fight for the leadership of France's main opposition party – but will he win big enough?

Sarkozy returns

The ex-President is preparing to fight for the leadership of France's main opposition party – but will he win big enough?
Is the criticism of Ed Miliband a coded form of anti-Semitism?

Is the criticism of Miliband anti-Semitic?

Attacks on the Labour leader have coalesced around a sense that he is different, weird, a man apart. But is the criticism more sinister?
Ouija boards are the must-have gift this Christmas, fuelled by a schlock horror film

Ouija boards are the must-have festive gift

Simon Usborne explores the appeal - and mysteries - of a century-old parlour game