Ann: Meridian Rejection of Samuel Terry Takeover, page-23

A few thoughts on the Meridian letter:
1) What Meridian are suggesting is complex and in my view strategic to push BOD to show their hand as to a price they would recommend shareholders agree to where Meridian take over. I personally don't see how what Meridian suggested makes sense. Some are saying it would be a royalty stock separate to FAR but who would buy and what would be the purpose after 2027/28? Creating a new stock is expensive (think listing and ongoing corporate costs). More effective option would be for shareholders to be bought out. I suspect Meridian have come to this conclusion and onus is now on FAR to find a way to return capital, and one way is to get Meridian to buy out other shareholders.

2) I hate to harp on about this, but Cath still has given no context or explanation to market following her "around $1 fair value" comments to the AFR. Is this the price she reckons could be achieved from a wind up/liquidation, a signal to potential buyers (e.g. Meridian) looking to take over about a price management would support, does she have a plan to get share price to $1, why hasn't she or any BoD bought shares given they've been way below $1?

3) We're getting closer to an end game. After Meridian letter FAR ann mentioned Board will consider offer and advise shareholders of its recommendation in due course. Today's FAR ann sounds like FAR had already started investigating alternatives to just recommending shareholders reject the STAM bid. It shouldn't take too long, but I expect FAR to offer a pathway to quickly return all shareholder value or get pushed to do so quickly.

4) What are the big holders strategies and next steps. Why did STAM stop buying at 40 cents? I think because they hit 5% and worried if they kept buying would result in a pile on and price getting too close to their valuation for selling/take over bid. From their latest report they certainly have fire power to buy out FAR and could have bid higher than 0.45. Why didn't Meridian buy more earlier because this should have been easy for them to see? Do they want FAR to keep drilling longer-term? Part of me thinks Meridian just hadn't put dots together. Another part of me thinks that there is a strategic play for Meridian I'm not seeing.