i have not tried to do a valuation on INP. I used to be a s/h of INP, but sold at a loss - lost all confidence in their mgt after Flax farce, plus INP purchase of tiny % in Bass Oil project (just that it is a meaningless size stake). INP then tried to increae their stake by trying to raise capital via a big equity raising, but of course no one was willing to gamble.
so merger prbably makes sense. I am a big fan of economies of scale, with all its attendant benefits.
But, DLS will be issuing 655m new shares to INP s/h.
Two things will surely happen once that Scheme is finalised and new shares issued: 1. New INP s/h will dump their new DLS shares on market
2. DLS will have around 2,600 million shares on issue! Thats totally silly -too unwieldy. So, once the new shares are issued, DLS will immediately CONSOLIDATE the number of DLS shares on issue. That consolidation will probably be a 10:1, which will bring the SP to around 70c per DLS share.
In my experience, a consolidation usually drops the effective SP.
anyway, plenty of water to flow under the bridge ( and even more in rural Victoria!)
cheers
DLS Price at posting:
64.0¢ Sentiment: None Disclosure: Held