KAR 4.26% $1.46 karoon energy ltd

Ann: Acquisition of Interest in GOM - Investor Presentation, page-15

  1. 2,890 Posts.
    lightbulb Created with Sketch. 210
    The deal is a tad expensive at US$23.20 USD / bbl for 2P with WI costs in the GoM, but the deal gets them inclusion in the asx200 and a heap of index buying so I can see why management got suckered into it, plus it derisks from exposure to further Brazilian tax changes.

    What always gets lost on these deals is the destruction to the share price, i.e. the discount it effectively placed on their existing Brazilian assets, so really the purchase price cost them and extra $200m, as I can't see it trading above $2.40 any time soon.
 
watchlist Created with Sketch. Add KAR (ASX) to my watchlist
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.