ESG management have tied shareholders interest with STO.
90 cents is now setting the reserve price which will draw out other bidders if there are there. That 90 cents assumes the market likes the deal.
Broker consensus for STO is leaning on the buy side but who knows here we'll be in October.
The tie up with Tru further secures STO hold over ESG, 21% plus 5% plus management etc.
It is pretty clear that Tru were waiting for the carbon tax details before signing up and I think it says alot about the bright future of the domestic gas market.
Failing another bid, as shareholders we have to tie our fortunes to STO and GLNG or sell once the deal is done.
44 million shares have changed hands in 35 minutes with some big orders on the buy side. 53 million buys at present under 85 cents.
Have management blinked? You bet they have. The wording of the announcement indicates that management will be retained to progress the Narrabri project.
Salaries and the value of their shareholdings secured.
The impending reserves upgrade must be a cracker but those results will be very slow coming now if at all.
Switching my sentiment to a hold.
ESG Price at posting:
84.5¢ Sentiment: Hold Disclosure: Held
