In the past Kalahari has been trading at a significant discount to the implied value of its EXT holdings. By my calculations (which take into account the recent capital raisings) that discount has now disappeared. Any further rise in KAH should be matched by a rise in EXT. So the recent rise in KAH may simply reflect that it was a cheaper entry into the Husab project than buying EXT shares direct.
In terms of a merger, the shareholders of KAH should (at least in theory) just get the EXT shares KAH owns distributed to them Of course, we can expect Hohnen to be in there grossly overvaluing KAH's other meager assets and disadvantaging non-KAH shareholders of EXT.
EXT Price at posting:
$8.74 Sentiment: Hold Disclosure: Held
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