Tshipi bidders narrowed down as 2nd round approaches, page-2

I've never thought of the process like this before, but Okenia on LSE is spot on with his/her insights in my opinions:

Quote:
"I suspect the IPO idea is little more than a negotiating stance. To show that if a good trade sale price isn't offered, they can walk away and go down a different route.

The other messaging is the buyback price which is a non-subtle way of indicating their reserve / starting price.

Given the paucity of good new Tier 1 projects to replenish the asset inventories of the majors (not least due to them withdrawing from exploration in recent years), I'm sure there will be very strong interest in a low cost very long mine life T1 asset like Tshipi. A trade sale must be the odds-on favourite outcome."