cornerstone investor - good and bad part

Linc Energy secures Genting as cornerstone investor but at what price!!
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Genting, the Malaysian conglomerate, has emerged as a cornerstone investor in the Singaporean share offering of Linc Energy, the Australia-based energy group, the Australian Financial Review reported. Linc is relisting its shares on the SGX in order to raise SGD 54.4m (USD 43.5m), as reported.

The report cited Linc’s chief executive, Peter Bond, as saying that Genting has been very interested in Linc’s underground coal gasification process and is eager to make it part of its portfolio. Bond said talks will be held with Genting over potential board representation.

The report said Genting will acquire 47.85m shares in Linc at the offer price of SGD 1.20 per share, plus an option to buy an additional 10.75m shares. The report noted that Genting’s initial stake will amount to 10% of the company.

The report said Linc will continue to be based in Australia following its switch from being listed on the ASX to the SGX.

The report cited Bond as saying that the Singapore offer, jointly managed by Credit Suisse, DBS Bank, and JPMorgan, has attracted strong demand.

The offer opens on Thursday and shares are set to begin trading on 18 December.

The report also cited Bond as saying that in January Linc plans to focus on the sale or spin-off of its coal exploration business. Bond said the company is already talking to parties interested in buying all or part of the assets.

Source : Australian Financial Review