SARCO is a JV between ORD and NFC in which ORD holds a 49% interest. SARCO is going to be floated later this year / early next year. If ORD is expected to retain a significant interest of c. 16.75%, you'd expect their JV Partner would retain a similar interest. That makes it 33.5% interest.
So they would be effectively selling off 66.5% of the company to the public. This is expected to raise c. 200m. Do you seriously think that the public is only going to value the refinery? They will value SARCO based on its future prospect not just the CAPEX. Don't get me wrong, I think ORD is significantly worth more than 10.5c, but if you accept DFS numbers of 16.75%, then I can't see how ORD's theoretical share of SARCO at IPO time is not 10.5c.
Please enlighten me if I'm missing something because so far no one has said why those calcs are wrong.
Add to My Watchlist
What is My Watchlist?