Ann: Hancock Offer - Second Supplementary Target's Statement, page-21

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Hardcash

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16/01/23

14:04

Post #: 65713602
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Originally posted by Jezzalenko30: ↑

I found it interesting their statement that since the announcement, there has been considerable buying by hedge funds, who they expect to accept one of the offers.

If that's the case and they have collectively >10%, then thinking through a few scenarios:

- Its likely they were only ever short-term focussed. Otherwise, they'd have bought in prior at a cheaper rate if they believed in WE. So the lower risk is to sell to Hancock and get $0.36 (assuming they have a level of confidence their holdings will help hit the 40%). Low risk, get the cash, and return quickly, especially if they were buying sub $0.30.

- Unless they have STX buyers already lined up, then they'd need to be longer term focussed on the upside to take STX offer. Otherwise they risk dropping the STX SP when they try to sell on market.

So I wonder if STX are trying to identify a potential cornerstone investor to do an off market trade to these "hedge funds"?

If I had a decent amount of WGO as one of these funds, I'd be chatting to STX and saying what can you do for me if I convert, because I'm not in this for the long run and I can't convert only to sell, otherwise I risk dropping the SP back to under $0.36.

Would be massive if someone took a big stake in STX by buying up off market a fair chunk of the WGO converted shares.

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all we know is that up to this point in time, none of the BIG O&G guys have shown up for the party. At some point they have to arrive as l cannot believe one amongst that group will not take a position in the PB.....

Last edited by Hardcash: 16/01/23

WGO Price at posting: 39.3¢ Sentiment: None Disclosure: Not Held
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