Ann: DLS: Drillsearch Offer for Acer Energy Open , page-21

re: Ann: ACN: DLS: Drillsearch Offer for Acer... Hoping to get some thoughts on what has just been announced.

DLS has upped their bid by %12 to $0.285 per ACN share.

That puts the new total price at about $132 million.
Now DLS also has $44 million to be spent over the year ahead
(going from the last Oct preso).

DLS has approx $95 million in cash currently, with $100 million credit facility.

If the bid is successful, the total cost + FY13 expenditure is
$176.5 million.

That leaves DLS with with approx $19 million in cash (excluding production revenue etc).
The take over itself will also cost a bit of $$.

That seems pretty tight to me, it also leaves them with a real issue of being literally, outbid... Many players in and outside the Cooper have bigger pockets.

I realise that DLS management clearly see lots of value in ACN, but I think in the end game, they are going to fail.

Perhaps this was their plan all along, to simply buy the %20, then later sell it to the highest bidder? (I agree a stretch of the imagination). In the long term, if a script offer is put out by someone else, DLS might get a substantial holding in the winning bidder. All very interesting no doubt.