Its very unlikely that WES is going to be successful. The problem is that this company has been a great earner for SOL and my umderstanding is that they want to keep it that way. WES would have to go to $2+ as this is the growth profile that API/SOL is looking at. In my opinion the new digitised order/distribution platform is what is going to do it. Once the country gets out of a phase of lockdowns elective surgeries will recommence and that will increase demand significantly. Overseas trade channels will also free-up with increased vax rates so some of the input costs/blockages will dissipate.
This needs to be factored into any bid so very unlikely to proceed. Unfortunately for WES, SOL is a very conservative investment vehicle so any bid will have to be wildly overpriced to be acceptable. They could go hostile but why would you when SOL could easily outprice them. When you look at it this way, the WES bid is desperate and when I first saw it I largely ignored it. There just no way.
- Forums
- ASX - By Stock
- API
- Ann: API Board rejects indicative proposal from Wesfarmers
Ann: API Board rejects indicative proposal from Wesfarmers, page-5
-
- There are more pages in this discussion • 18 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add API (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
SER
STRATEGIC ENERGY RESOURCES LIMITED
David DeTata, Managing Director
David DeTata
Managing Director
SPONSORED BY The Market Online