You really do have to laugh at the UK market’s reaction to the deal. How predictable.
For months people have been moaning on about a deal not being done on LC, ruthlessly lambasting the board. Now the deal is here, they're still not happy. Were people seriously expecting a deal where tens or hundreds of millions would be invested for a 50% or lower giveaway? That would have been lovely wouldn’t it? But, I think we've reached a point, and I include myself here, where reality has to kick in, and we have to accept what’s on the table and move on. In a perverse way, I'm glad LC is sorted - it had become the elephant in the room.
We are probably a bit deluded if we think the board could have done better or indeed done a better job ourselves. I found it very difficult to determine what a good deal might constitute, and I think most here and elsewhere wouldn’t really know either. Yet, still people feel qualified to whinge and whine, and in some instances, excoriate our directors. Whether we like it or not, the deal with CD Capital is the best we can expect as obviously no-one came knocking on the door with a better offer.
Don't forget, it’s not so long ago that some people thought LC was dead and buried. Well, thankfully, the deal has put that notion to bed at least and as has already been pointed out, we still have 30% of a large, highly profitable project that will be funded through the feasibility process, rather than one that is mothballed. What's the betting that buyers will be lining up at that point and we end up getting 30% of $200-300million? We can tie ourselves in knots looking at what has been spent and what we are getting now, but the reality is we really are operating in a different world today.
Don't get me wrong. I'm not comfortable with the situation here and my portfolio looks pretty sick tonight (I've even told my wife the motorhome and tour of Europe will have to wait) but I do agree with Bluebottle. I also think MNC is massively oversold and the price should recover somewhat in the coming days and weeks.
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