It is expected that AOE and Shell will ultimately split ownership of the permits.
However I suspect there are significant tax and possibly other advatages in AOE first taking PES, then handing over a slice, rather than the other way around.
Why a part scrip offer in the first place rather than a combined AOE/Shell cash offer? I strongly suspect the key players in PES want to continue with the story and not just take cash. Why?
What everyone seems to be ignoring is that many holders in PES see plenty long term mileage in the csg story. ORG and STO are not pure enough or leveraged enough to the story. Apart from taking their BG cash and buying AOE, there about 4 small ($50mm ish) Qld csg coys left - most with warts. If BG wins a few hundred million will be looking for a new csg home.
Why would you sell your PES to BG, and risk paying over $3 for AOE by the time you reinvest it?
EL
AOE Price at posting:
$2.65 Sentiment: LT Buy Disclosure: Held
