sapex should reject this merger offer

This is Mr Lincoln Augustus, first second cousin of Holymagiman.


I have given this merger with Linc great thought over the last few hours and it is my humble opinion that there is NOTHING positive that Linc can offer Sapex in a merger, apart from a much touted but still unproven UCG technology to exploit Sapex's coal.

You have to remember that it was Linc that made the offer and it is Linc that has been buying up 5 percent of Sapex, not the other way around.

If Linc keeps that 5 percent that it has bought, it is surely going to value add to Linc's asset base as Sapex increases in value without the merger.

However, we have to remember Sapex's assets......Sapex has the coal, Sapex has the deal with ESG for coal bed methane exploration and most important, Sapex has the oil exploratory rights over the Ankaringka Basin, with the seisemic survey already done.

Is it the results of this survey that has triggered this unwelcome offer? Who knows....??

I feel that a merger with Linc is inappropriate and not to Sapex's benefit. I hope the Sapex Board rejects the offer.

This offer by Linc has highlighted Sapex's assets and I am sure that there will be another suitor in the wings soon.

I remain
yours sincerely etc., etc.,
MLA