Independent investment firms are taking a greater share of advisory fees than ever as companies turn to old-fashioned skills in an uncertain market. Boutique banks, which provide advice on mergers and acquisitions and restructurings, accounted for 14 per cent of global M&A fees so far this year – the highest level since records began, according to Dealogic.
That was from Monday’s FT and boutique banks don’t come any more boutique than the one advising Emerald Energy, a £350m exploration company, on its bid takeover approach.
Meet Harland Capital Limited:
Established in 1997 Harland Capital was established in 1997 as a private and independent corporate finance advisory house. In conjunction with its associates and partners the Harland Capital Group offers independent corporate research, corporate finance advice and access to proprietary and third party funds.
Harland Capital has a strong focus on Natural Resources and Emerging Markets. We are authorized & regulated by the Financial Services Authority, headquartered in London and we have partners and associate offices in London, Perth, Beijing and Buenos Aires.
The company is based in Cirencester, Gloucestershire (not that you’d guess it from the Harland’s website) and is run by a couple of City bankers:
Harry Sutherland specialist in natural resources and emerging markets, with regional emphasis on Eastern Europe and the Central Asian Republics of Kazakhstan, Uzbekistan, Tajikistan and Kyrgyzstan where he lived from 1991 — 1996. Formerly a partner at Nabarro Wells & Co, and head of corporate finance at FD Capital.
Frank Moxon CF, FSI, FIMMM, FEI, Consultant, is managing director of Hoyt Moxon Ltd, a financial adviser to companies and professional advisers with an emphasis on Mining and Oil & Gas. He is also a director of the Securities & Investment Institute and Chairman of its Corporate Finance Forum, a trustee of Diabetes UK and Reach Volunteering and Vice Chairman of the RNLI City of London Committee.
A Loughborough University economics graduate, he trained initially as an analyst at Capel Cure Myers then spent 18 years in corporate finance roles at Beeson Gregory, Société Générale, Old Mutual, Williams de Broë, where he was head of corporate finance and head of natural resources, and Evolution, where he headed up the mining team.
Now, as advisory mandates go, Emerald is pretty straight forward. 50 per cent of the company is reckoned to the be under the control or influence of two Russian businessmen: Michael Kroupeev and Yuri Shafranik. They are the top two shareholders on this list and believed to control more shares through other vehicles.
Readers may recall that Kroupeev and his investment vehicle Waterford Finance and Investment Ltd and Shafranik orchestrated the broad-room coup and eventual $865m sale of First Calgary Petroleum to ENI.
Although it operates in Peru and Columbia Emerald makes its money in Syria, where it has a half share in the giant Block 26 license area. Operator Gulfsands Petroleum expects production at the Khurbet East field to reach 18,000 barrels a day later this year.
The talk among industry watchers, is that Kroupeev and Shafranik put Emerald up for sale earlier this year and the company has attracted the attention of a Chinese suitor that as this morning’s statement revealed is willing to pay cash:
Emerald Energy Plc (“Emerald” or the “Company”) notes the recent movement in its share price and speculation in the national press and confirms that it has received an approach from a third party who has expressed an interest in making a possible cash offer for the entire issued share capital of the Company.
It should be emphasised that the discussions are at a preliminary stage. Accordingly, no assurances can be given that any formal offer will be forthcoming or that any transaction will occur.
The Russian duo started building their stake in Emerald six years ago, when they backed a rescue rights issue and installed a new management team. Back then shares in Emerald were trading below 30p.
Today, they are up 70p at 633p, amid talk an offer will be pitched around 750p a share.
Update:
Reuters: 17:00.
Investment group Waterford Finance & Investment, the largest shareholder in Emerald Energy , believes 750 pence per share would be a good price for the London-listed oil explorer which said on Monday it had received a takeover approach.
“It is a good number, I would be very interested to look at this offer,” Michael Kroupeev, director of energy-focused Waterford told Reuters in a telephone interview.
Kroupeev said he would prefer a cash offer to shares but he was in no rush to sell his Emerald stake as he was optimistic about the Colombia and Syria-focused company’s prospects.
Kroupeev said he had not yet been approached by the party behind the bid approach.
Related link:
Emerald Energy sparkles on bid talk – FT