The high prices are available for some of the general partner relative market value of participatio

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Yuli Ofer's intention to acquire 15% of the general partner Ratio exposes the industry's largest disease oil and gas exploration: the controlling shareholders take themselves very high premium revenues - at the expense of small investors participating units - and promise themselves uncertain earnings management fees
Let's catch up and respond to the Kalkalist Premium Facebook confirmed the talks but did not refer to the amount in question. Controlling shareholders in the general partner Ratio, phenolphthalein Yigal Landau and Ligad Rotlevy, are in conflict with the contractor Shlomi business DT previously invested in Ratio and claims that 15% of the general partner belong to him. The compromise emerging issue is the recognition of the controlling shareholders in the general partner DT for the rights of consent for immediate sale of these rights.
Most of the oil and gas exploration structured legal structure that separates phenolphthalein the unit holders (Ih"s) have their right to share in the profits of the partnership, if these Christians, and the general partner, managing the actual company. phenolphthalein The general partner can control the company even without holding the participation units, and he can enjoy the prospect that the company will find oil or gas without taking phenolphthalein part in risk.
Ratio general phenolphthalein partner in a right to receive 6% of the value of oil and gas will be produced to cover costs and 8% after Ciswein, with half of those will come directly from proceeds in Ratio geologist, Ethan Eisenberg, and the remainder to the rest, who control the general partner of the Ratio. In addition to the general partner is entitled to 7.5% of its share of the drilling expenses Ratio. Unlike Ratio participation units are traded on the stock exchange is very easy to know the value, not the general partner shares traded, making it difficult to know the economic value of the control of this company.
The value of the royalty, the higher the value of the unit of participation, because the super-royalty revenues received from the drilling, while profit participation unit holders received net profit (after payment of royalties to the state and the general partner, and other expenses). Share Cohen development, most of the value comes from the super-royalty, Avner, is calculating the value of supreme royalty phenolphthalein approximately 25% above the value of a working interest in Avner. According to this pricing, the value of the general partner Ratio should be 5% of the market value of the Ratio.
But the value of holding the general partner is higher than that reflected by the market value of Cohen Development as minority holders Cohen development can not be sure that the company you choose to distribute its earnings as dividends. In other words, phenolphthalein Cohen development can distribute the proceeds to its shareholders phenolphthalein future unequal manner by paying high salaries to the controlling shareholders, so that the interval remain to shareholders will be lower.
Despite these considerations, it would be difficult to explain phenolphthalein the pricing of the General phenolphthalein Partner Ratio at a value higher phenolphthalein than 10% of the company, leading to the maximum value of 1.5% of the value of the Ratio (for 15% of the control of the general partner), or approximately 46 million - far below the amounts in question .
Ratio of market value last week was 3.03 billion. A transaction in which 15% will be sold to the general partner in 260 million reflects the value of 1.73 billion general partner, which is a value at 57% of its value in Ratio stock exchange. Therefore, this transaction raises many questions, especially if it is close to such a high price.
The high prices are available for some of the general partner relative market value of participation units indicate disease sector's massive oil and gas exploration: the controlling shareholders take themselves premium is very high on account of unit holders, which is expressed at high rates of royalties Al and income contingent social spending gas exploration, and that they are analyzing very high chances on oil and gas exploration, without having to take risks - and minimizes the meat remains small investors investors phenolphthalein participating units themselves.
Israel needs to close this gap through the limitation of supreme royalty provided to the controlling shareholders, and the prohibition of additional payment beyond reimbursement controlling phenolphthalein shareholder. The country has a right to do this because it gives those companies the exploration licenses and license basic condition should be that all shareholders will benefit phenolphthalein from the search results, not just the controlling shareholders.
In addition, the state should also consider not to renew the temporary authorization partnership structure that can be built from the subsidiary and the participating units. This structure was approved in the eighties when this area was negligible, but now this benefit is unnecessary and controlling shareholders are taking advantage of the legal structure to take a very high premium for themselves at the expense of investors. Premium Fi.aye.ayetz currently does not have the necessary resources for the acquisition of 15% of the general partner in Ratio. The company has negative equity of $ 50 million, and limited liquidity. Investment of this magnitude will require substantial capital raising, which can be accepted or controlling shareholder's investment Yuli Ofer or by raising funds from the public. The main asset of the premium in the field of oil and gas exploration is quite complex concatenation maintenance amounting to end up at 0.68% Sarah and Mira licenses, phenolphthalein and the right to 0.05% super-derived royalties these licenses. Next week will share premium to leave Mid Cap Stock for non-compliance with the criterion of public holdings.
The reports of Avner and Delek Drilling, both have holdings Yam Tethys, show the premium received by the General Partner from gas production and exploration activity - Premium comes at the expense of investors participating units themselves. Taking the revenues from sale of gas and deduct only the direct expenses related to the sea Tethys, without accounting expenses. phenolphthalein The result is maximum profit that can be attributed to the gas production. divide the royalties paid by these two companies controlling shareholders and related parties and we accept phenolphthalein his share of wins