Ann: Continuous Gas Flows Achieved, page-88

Morning Interested, just want to respond to point 4 which I suspect was directed towards me as I am against the spin off and suggested a cost of $20M.

I have no problem with people seeing it differently and being in favour of the spinoff. But if you think the spinoff figure is rediculous, would you mind providing your estimate to disprove my number?

There are two potential scenarios, with or without an IPO attached.

If there is no IPO, in your opinion how much seed capital is required to fund Newco on day one and where would this capital come from?

If there is an IPO, you add the cost of preparing the IPO, prospectus, lead manager etc, to the rest of the SOA costs and then you need to factor in the dilution to TPD holders.

The SOA and Newco are mandatory under the STX offer so the cost of Newco is a subset of the cost of the SOA as STX placed this condition on their bid. I stand by $20M and TBH that might be a bit light.

Look forward to your response convincing me that the timing, cost, and benefit of establishing Newco today has merit given the lookthrough of $40M.