As a TO it would have to go to a vote and it would certainly be interesting to see what offer it would take for our top 200 shareholders, who control over 70% , to throw the towel in. At a guess 14-16c would probably do it. SNE is a very small part of WPL's empire and any deal would hardly be noticed and certainly quickly forgotten about...one thing WPL has is access to all the SNE data so would go in with there eyes open..
Getting on to the possible FAR/CNE sell down, I couldn't see them accepting anything less than US$7 Bbl for a mixture of Resources and reserves , and if using FAR's RISK numbers that would put a value on our expected 13.7% of A$860m (13.6c) before any tax considerations...one of the beauties of the current exchange rate is it has a large multiplier effect on anything sold in US$ and that combined with a reasonably robust oil price is perhaps a large motivatioon for FAR considering a sell down, other than the obvious need for cash...who knows what the exchange rate or oil price will be in 2022 ,which is just another of the many risks involved in long projects..
Anyway on the basis of that and given our cash position and other leases IMO means any WPL offer less than 14c would be rejected on a vote...but any offer would do wonders to the shareprice..
Cheers Whisky
FAR Price at posting:
6.2¢ Sentiment: Buy Disclosure: Held
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