Wave goodbye to your cash dividend It looks like Salida Capital wants to get their hands on the trasure chest following the Genel transaction.
Salida had a very bad performance with their hedge funds, rumour was out at end of last year that they would not survive their fatal investment decisions.
With a little bit of cash (a few millions for the shares) they now have the chance to put their hands on the cash coming in from the Genel deal. Maybe they want to pump it to some of their bad investments.
"Startegic transactions (...) to enhance the value of its investment (...)"
Enhancing the value of their investment does not necessarily mean enhancing the value for the rest of the shareholders.
Watch out for new Salida directors getting bonuses, consulting fees, fishy transactions etc.
Just my opinion.
Here's the early warning report from today:
Salida Capital LP Issues Early Warning News Release in Respect of Longford Energy Inc.
TORONTO, ONTARIO -- (Marketwire) -- 03/01/12 -- Salida Capital LP ("Salida") announced today that it has, on behalf of certain funds managed by it (the "Funds"), completed acquisitions (the "Acquisitions"), during the period February 6, 2012 to February 23, 2012, of an aggregate of 14,890,300 common shares ("Shares") of Longford Energy Inc. (the "Issuer") (representing approximately 8.19% of the issued and outstanding Shares) in the open market. Salida previously filed a report on February 8, 2012 under Part 4 of NI 62-103 in respect of the period ended January 31, 2012.
Prior to the Acquisitions, Salida, on behalf of the Funds, held and exercised control and direction over an aggregate of 21,268,000 Shares. As a result of the Acquisitions, Salida, on behalf of the Funds, holds and exercises control and direction over an aggregate of 36,158,300 Shares, representing approximately 19.90% of the issued and outstanding Shares. The Acquisitions occurred on the TSX Venture Exchange between February 6, 2012 and February 23, 2012 at prices ranging from
.14 to
.175 per Share.
The Shares were acquired, in the ordinary course of business, for investment purposes. Depending on market conditions and other factors, Salida, on behalf of the Funds, may from time to time acquire additional securities of the Issuer, continue to hold securities of the Issuer or dispose of some or all of the securities of the Issuer in the open market, by private agreement or otherwise. Salida no longer intends to file reports under Part 4 of NI 62-103 in respect of the Issuer in order to provide Salida with the flexibility that may be required to enhance the value of the investment in the Issuer.
Salida, on behalf of the Funds, supports the agreement by the Issuer with Genel Energy plc to dispose of the Issuer's interest in the Chia Surkh Block (the "Transaction"). However, Salida, on behalf of the Funds, has engaged in discussions with management of the Issuer, and may engage in discussions with the Board of Directors and other shareholders of the Issuer, regarding the Issuer's prospects and potential means for enhancing shareholder value, including, without limitation, with respect to the use of the Issuer's cash following the closing of the Transaction, the pursuit of one or more strategic transactions and the composition of the Issuer's Board of Directors. As a result, Salida, on behalf of the Funds, may also seek to initiate or participate in such other actions as it deems necessary to enhance the value of its investment in the Issuer, including without limitation, actions intended to cause changes to the strategy or Board composition of the Issuer (including the requisition of a shareholders' meeting for the purpose of replacing directors of the Issuer and soliciting proxies in connection therewith).