As Nido's service contracts in the Philipines continue to increase, speculation is arising that the company could become the target of a takeover.
I believe that Nido is ripe for the picking and that a company such a Shell Philippines, a subsidiary of Royal Dutch Shell would be a logical suitor for Nido – as Shell is presently a major oil patch player in the Philippines.
From a pure fundamental standpoint, Nido would make an excellent target for the right company. Its market capitalization is around $70 million, which means Nido could be swallowed up relatively inexpensively.
The question is how Nido's assets offering fits into Shell's overall strategy.
In my opinion, as Royal Dutch Shell is starving for more acreages, Nido's assets if acquired at the right price, could be the answer.
Lets not forget that Nido and Shell have already forged a close working relationship through Cool Energy's gas technology investment.
One has to wonder if anything else is cooking?
If Shell is serious about expanding their exposure in the Philippines, buying Nido would be a good way to go about it.
NDO Price at posting:
0.0¢ Sentiment: None Disclosure: Held
