Sell Atlantic for a fair price - great news, real cashola on the balance sheet for an asset currently valued at zero. Not withstanding the additional risk this adds to the revenue stream (ie its all PNG) this should be a big boost to the share price.
Sell Atlantic at fire sale prices - bad news. Lock in a $700m loss to this business, increase risk and demonstrate that the management are completely incompetent.
Why now? Pull factor: Hopefully someone has made an offer that's worth considering. More mining friendly environment in Canada, gold price through the roof. - hold out for a good deal. Push factor: IF it turns out they are selling Atlantic because they believe they need to find 200m to foot that tax bill - I'd hope that the major shareholders pursue the Directors in court.
Of course, all speculation at this moment in time, but the market has not taken the news particularly well.
SBM Price at posting:
26.0¢ Sentiment: Buy Disclosure: Held
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