The only thing IFE will have will be some cash - R&D rebates, barge sale (hopefully) - but presently no business to continue forward with. Looking at past valuations doesnt help.
Combined entity will offer better opportunities to leverage group assets, if there is any hope for these two it is combined, and not standalone.
Agree that IFE being split out before allowed directors to double-dip on salaries, so this too is better transparency.
What I see that can (well might happen), is that TRF has cash to progress, OGX acts as a feeder (assuming that goes well) and all this then buys time for IO pricing or AUD/US exchange rate to find and appropriate value that may or may not allow IFE to provide some level of profit - possibly through mine gate sales to Arrium (who are looking to upgrade on grade, but im not sure how they currently want to play out).
Overall I see this as a better move than it not happening. 1:1 ... seems fair enough to me - i cant see what else it would be.
Best chance they have to continue, fingers crossed.
Looking at the timetable this isnt going to be a quick thing, nor is it going to cause any major excitement, but i do think it provides a little additional stability about future.
I hold both and think its best way forward, in what still remains a gloomy situation.
TYX Price at posting:
1.7¢ Sentiment: Hold Disclosure: Held
TRF Price at posting:
2.0¢ Sentiment: Hold Disclosure: Held
