Bank increases stake in IGas

181116 Tinker Lane Eric Walton4

IGas Tinker Lane shale gas site, 16 November 2018. Photo: Eric Walton

HSBC bank has increased its stake in IGas, which is currently drilling for shale gas at Tinker Lane in Nottinghamshire.

A notice, issued by IGas yesterday, confirmed that HSBC had increased its voting rights to just over 11%, up just over 1%.

According to the notice, HSBC now has 122,077,269 voting rights in IGas.

This is the latest in a series of increases this year in the stake held by the bank in IGas. In less than six months, HSBC has increased its share of voting rights from 5.69% to 11.06%.

HSBC is among a group of institutional shareholders that now appears to own about two-thirds of IGas.

An analysis by DrillOrDrop of RNS notices issued by IGas indicates that the private equity fund, Kerogen Capital, the largest of the company’s significant shareholders, has maintained its 28% stake since April 2017.

The Singapore-based KOG Investments, currently holds just under 15%. Other significant shareholders are J O Hambro Capital Management (4.91%), Royal London AM (8.37%) and Sand Grove Capital (3.7%).

Sand Grove, which is based in the Cayman Islands, has maintained its shareholding since October 2017 but it has gradually increased its stake through financial instruments (RNS). In August 2018, IGas reported an increase in voting rights from this source from 1.26% to 6.51%. There were three more increases, most recently to 10.28% at the end of October 2018.

At the time of writing, IGas shares were down 2.39% on the day at 90p. The most recent increase was on 30 November, to 92.20p. But generally, the trend has been down since a high of 120p on 12 October 2018.

IGas announced on 27 November 2018 that it had spudded the shale gas well at Tinker Lane, near Blyth in north Nottinghamshire. This is the first of the company’s shale gas wells in the east midlands.

36 replies »

  1. So we all agree that our money shouldn’t be invested in fossil fuels.
    Why not cash out of these institutions then?
    Maybe invest in real products instead?
    Pay with cash and maybe barter? No vat and no traceability!

    • And the poorer in society get help from the magic money tree!

      More collateral damage to feed the dog(ma). Hmm. So much for the caring façade. No wonder it only represents a minority.

  2. We all agree? No we don’t “all agree”. I am perfectly happy for my pension to be invested in part in Shell, Schlumberger, BP…

  3. HSBC will probably absorb the losses in exchange for tax breaks. Our govt has clever ways of concealing its subsidies for FF. The fracking programme is clearly being incentivised – behind a smokescreen.

    • Subsidies for FF are generally a myth, an invention of Greenpeas etc. There may be tax breaks but these tax reductions are on much higher taxes imposed on O & G vs any other industry. It was possible to write down exploration costs against tax on production (which was at one time 90%) for some companies on some fields. But there is no tax and therefore no tax breaks of any kind unless a company goes into production and starts to earn money. Cuadrilla e.g. are not getting any tax break / subsidy for their exploration program; every £ spent is their money and all is lost if they do not go to commercial production.

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