..(" Recently we announced our intention to list the Canadian oil assets on a North American exchange. This is aimed at, amongst other things, maximising value for shareholders for we believe the value of these assets are not being accurately reflected in our ASX share price.)"..
Ronash,
That is a total hogwash on it's own. Because all it would do is to raise cash for themselves instead of another capital raising.
If they really meant to do something for the shareholders by doing so, they should give us an equivalent or a pro-rated amount of shares in the new Canadian listing for free, the same as many other companies did before them.
The latest one was with KZL. They did the same there. The existing shareholders had to buy shares in the new IPO (Not for free mind you), the money went to the Company (KZL), and the KZL's sp went backwards as a result.
On the other end , have a look at where the Shareholders received a real benefit from such a proposal, from the likes of WMC and Macquarie Infrastructure from memory. The latest one was from another Maquarie venture that split in another two, the likes of ITO and a second one that I can't recollect at this moment in time because I sold out, and that is involved in toll roads in Europe. Shareholders in those case received the whole lot of their shares in one lot 100% of their previous holdings and with the second one a pro-rated amount. That benefited the shareholders full stop.
IMHO, when you have sold an asset, the value of your company is reduced accordingly, and to say that the value of your asset is not really reflected on your total asset value, is a little misleading at best. If you own three houses, you own three houses. And if you sell one, you will end up with two, not three. Go and tell that to the Bank when you are going to try and borrow some money, and see what they'll tell you.
I believe that MPO is again short and looking for money. And they will come up with anything to try and get it.
Buddy
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