Share price is only part of the equation. Pre-WGO transaction,...

Share price is only part of the equation. Pre-WGO transaction, STX has around 2.1bn shares on issue. It issued approx 400mn shares to WGO holders who accepted the STX offer, and another c.300mn shares to TPD holders - bringing its total SOI to current c.2.85bn. So even though the share price is similar to when the updated BPT bid for WGO was launched, its EV is 150mn higher than it was back then.

When STX launched the very first bid for WGO, both STX and WGO were significantly undervalued, particularly WGO which was trading on around 0.60c/GJ IIRC. I don't think the market thought much of WGO management, but the "management discount" it applied was so large that it even enticed me to buy into WGO. So when the various bids came for WGO, it essentially provided a mark to market value for both their assets, which was then reflected in both their share price.

I have already posted enough times around what I think STX is worth, so I won't repeat that again. All I will say is that SE result has obviously subtracted a decent chuck of value from its valuation, but since then, Walyering has gone into production and generating significant cashflow and the value of WE gas hsn't changed. If anything, WE gas is worth more than what it was back then given where the spot price is as well as the positive supply/demand forecast for the next 10 years.

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