Ann: Presentation - Recommended Merger of Beach and Drillsearch, page-32

Out of interest, what happens to that existing Beach stake in DLS? they can't issue shares to themselves, so is that shares removed from the merged registry? If so, that's the same effect as a buyback isn't it?

That's a really good point and I've read the document and found note (4) on the first page:


(4) Beach currently owns ~4.56% of Drillsearch’s total issued share capital

When you look at where (4) relates to:

Under the terms of the agreement, Beach has agreed to acquire all of the shares in Drillsearch that it does not already own (4) via a Scheme of Arrangement (the Scheme). Drillsearch shareholders will receive 1.25 Beach shares for each Drillsearch share held.​

So in effect the offer is for 95% of the registry not 100% - my head went inside out when I tried to work out what this means - is it better for all holders then as there will be less dilution on Beach registry of the 4.56% plus the extra 25% per share issued for DLS shares - in effect that holding then is extinguished?