explain this, page-10

Hi all

I had a chat with MD Peter yesterday evening. I found it an interesting discussion. As you would expect he had his CLO spiel down pat. He spoke well and seemed open to my questions and concerns.

A few key points from the conversation

* He was in the process of drafting a layman's terms clarifying statement for release to the ASX on monday.

* That $10 call option business, its 10$ per shareholder, more for the paper work/legal doco that anything else.

* as well as to assist growth, a key point of the deal is risk management, given the size/expected size of projects and CLO's resources/experience etc in larger projects.

* additional benefit of swapping out large shareholders with more active shareholders with an interest in the industry. (mumbo jumbo?)

* discussons were started with CLO sept last year when the share price was 1.40 ish.

* he would have liked to have paid a higher div, but given he growth expected and current environment they chose to preserve capital.

* he didn't expect shareholders to take up the 2.10 offer, it was more of a token offer to make it fair given the majors were getting this price. added bonus of putting a floor under share price.

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I agree with you Veecat, in that the price would be a fair bit higher if it wasn't for this deal. I am still unhappy about the 1.90 price. As you say, they claim how undervalued they are yet issues shares at 1.90, it is contradictory..even if discussions were started when the share price was lower. I don't know why they 'recommend' we accept the offer, maybe they had to use that term as they to convinced the majors to sell at that price. Peter claimed he had to sell it pretty hard to them.

I hadn't seen the article (and cant find it?) that mookie was quoting, so I couldn't question some of their apparent quotes to the media.

On a lighter note, I mentioned to him that I heard of FGE via hotcopper. He said he doesn't read it, but was advised that he got a caining on here the other day..i said yep, your lucky the worst of it was deleted.

Based on past performance, they obviously know what their doing. I will be holding, and probably accumulating more.