If HAS are really going to acquire an interest in downsream business in Europe, there are only 3 ways to pay for it
A) issue shares in HAS: that cannot be done at a premium to market. Likely at a discount
B) Cash : Although we have cash on books, that's for funding construction and we still need to raise a lot more. Paying cash will only increase the funding gap and require a larger cap raise again at a discount.
C) A bespoke transaction like below
we may see a structured transaction where HAS will obtain funding necessary to construct yangibana and at the same time acquire an interest in downstream processing. This would obviously require a consideration, and that could mean HAS to issue shares or enter into some sort of JV by giving away part of upstream business. Noting the offtakes are mostly already committed so HAS don't have much dry powder.
Guess we will know Monday. Hold tight
(20min delay)