Agree EyeSky, and I reckon they would also be disappointed in the price achieved considering the potential and amount of work and chalenges overcome to get to this point. I'm assuming the decision to agree to the transaction as structured: - Macro view of the cycle - time to cash in according to the Lion Clock. We might think it a bit early but with large chunky transactions you often don't get to choose your precise timing. - Negotiating position... Merdeka clearly have the financlal capacity and local contacts to get things done and had become the major/key player in the project. - Fatigue? It has been a long haul with a lot of Lion management $$$ tied up. Taking a solid profit as opposed to a potential bonanza might have been a risk management decision having seen and experienced what can go wrong in Indonesian projects.
Nusantra was a similarly unexciting exit. No complaints from me though, the people making the decision have a lot more skin in the game than me so would have made the best decisions they could.
What will be done with the $$$? Capital return perhaps?
LSX Price at posting:
52.0¢ Sentiment: Hold Disclosure: Held
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