Seemingly small beer given the cashflow coming from their core business but a few other positives: 1. Removes risk of them blowing cash investing heavily in these marginal (on their own) resources 2. Creates synergies with FEX to reduce overall marginal costs 3. Provides an opportunity for MGX to share in any upside through shareholding in FEX
Main downside is that they may now be likely to look for other acquisitions to keep themselves busy. Personally I'd really like them to concentrate on KI and delivering value for shareholders.
Any activity not 100% directed towards getting the share price well north of 50c (or returning similar in the way of dividends) is largely a waste of time imho.
MGX Price at posting:
44.0¢ Sentiment: Hold Disclosure: Held
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