Absolutely Walbrook Conceptually - Incoming partner pays $500m to SDL FOR 40%. Partner pays a further $500m into the project (SDL pays in their $500m received from the Partner) + the equity contribution from the minority shareholder in Mbarga and Nabeba. The Govt's are free carried on equity so put nothing up. The PROJECT has a little over $1b equity and they raise $3.5b debt. Of course the "give and take" is that the Partner gets its equity cheaply but has brought debt funding to the table, perhaps gets an offtake deal as well to help secure funding. Most projects are funded like this. There is 99% no way that SDL will issue shares because.1) the partner, Chinese? would control the board and SDL and there is no guarantee that shareholder interests would be preserved. 2) by selling 40% of the project, SDL can still be the operator of the project and make the appropriate decisions in the best interests of the local community, SDL shareholders and its project partners.
SDL Price at posting:
35.5¢ Sentiment: Buy Disclosure: Held
