{"id":548495,"date":"2022-08-10T04:00:08","date_gmt":"2022-08-10T04:00:08","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2022\/08\/10\/capricorn-tullow-saga-a-hard-landing-for-softbank\/"},"modified":"2022-08-10T04:00:08","modified_gmt":"2022-08-10T04:00:08","slug":"capricorn-tullow-saga-a-hard-landing-for-softbank","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2022\/08\/10\/capricorn-tullow-saga-a-hard-landing-for-softbank\/","title":{"rendered":"Capricorn \/ Tullow saga + a hard landing for SoftBank"},"content":{"rendered":"

<\/a> Yet another Capricorn shareholder is against the Tullow merger: <\/strong>Palliser Capital UK, one of the biggest shareholders in Capricorn Energy \u2014 with an ownership stake of over 5% \u2014 has asked the company to scrap merger plans with rival producer Tullow Oil, Bloomberg<\/a> reported, citing a letter by Pallisier\u2019s CIO James Smith. Smith argues that Tullow\u2019s offer undervalues Capricorn, adding that the plan amounts to a \u201cnil-premium\u201d takeover. UK-listed energy firm Tullow Oil<\/a> had made an offer to merge with Capricorn Energy<\/a>\u2014 formerly Cairn Energy \u2014 in an all-stock transaction worth GBP 1.4 bn back in June<\/a>. Palliser now joins<\/a> other shareholders, hedge fund Kite Lake and LGIM, in opposing the transaction.<\/p>\n

Why should we care? <\/strong>Capricorn has had a presence in Egypt ever since it acquired Shell\u2019s oil and gas assets in the Western Desert with partner Cheiron last year under an agreement worth up to USD 926 mn<\/a>.<\/p>\n

SIGNS OF THE TIMES- <\/strong><\/p>\n

#1- A hard landing for SoftBank as the tech bubble bursts:<\/strong> Tech investor SoftBank reported a record USD 23.1 bn loss in 2Q 2022 on the back of the ongoing rout in the tech market<\/a>. In a press conference that he himself described as \u201cdepressing,\u201d CEO Masayoshi Son admitted to taking too many big risks on tech stocks and startups and described his past behavior as \u201cdelirious.\u201d SoftBank\u2019s USD 100 bn Vision Fund lost USD 22 bn during the April-June quarter and since its peak has lost USD 50 bn in gains. Softbank will now slash headcount at Vision Fund. (Reuters<\/a> | Bloomberg<\/a> | WSJ<\/a> | FT<\/a>)<\/p>\n

#2- How bad is it for Wall Street on the IPO front? More bankers <\/strong>have time to plan their weddings<\/strong>, according to the FT<\/a>. The slowdown in IPOs in 2022 \u2014 down from a record year in 2021 \u2014 has given bankers more time to work on their personal lives, with more employees planning wedding announcements, managers, including Arps\u2019s global head of capital markets, tells the salmon-colored paper. Companies raised USD 5 bn in traditional IPOs in the US this year, according to Dealogic \u2014 a 95% drop from the USD 105 bn raised during the same period last year.<\/p>\n

ALSO WORTH NOTING-<\/strong><\/p>\n