More from Sub-Standard

9.6

Andre D’Simone, the managing director at a transaction advisor,
Kestrel Capital, said investors needed to exercise extra caution while
dealing with the oil marketer’s stock but could not confirm on the
progress of Puma’s takeover bid.

“Investors should be very cautious in trading on this stock but as far
as I know, the negotiations are still ongoing,” said D’Simone.

“I can’t say for sure how far they (negotiations) are though.”
KenolKobil has however refused to issue a clarification or statement
on the progress of the buyout that has largely flopped, even as
speculation on the deal continues to influence price volatility. This
is after a senior employee of the firm talked to The Standard earlier
in the week, revealing the reasons for Puma Energy’s pullout.

Puma Energy spokesperson Victoria Dix declined to give an indication
on the buyout for the second time yesterday. The multinational had
announced that it would complete the due diligence on the oil marketer
by the end of September as it pursued the much publicised buyout deal
that has roused investor interest.

The collapse of the deal will have major implications on shareholders
of the NSE listed company, who had bet on the buyout to exit and reap
windfall gains from the sale.

Conclusions

I spoke to the Binary Risk previously where I said if Puma Energy
walked away There would be a sharp Sell Off because of the 1st Half
Results. I thought that Puma Energy would look through those H1
Earnings and look to the Opportunity to position themselves in what is
a Red Hot Oil and Gas Space