GOR will presumably be able to creep 3% of DEG in Apr 2023. Cost $60 million at current prices. Later in 2023 DEG will announce its FID and at that time will do a placement/entitlements issue for around $500 million while the balance of the required funds (another $500 million) will be debt funded. GOR should underwrite the DEG entitlements issue Equity portion and of course take at least its pro rata share of the Equity placement, as well as continue to creep again in Oct 2023. Total probable cost for all three would be at least $190 million (todays prices) and afterwards GOR will hold at least 26% of the enlarged DEG, maybe as much as 30%. I'm not sure all that is possible under the Corps Act, maybe someone can correct me? All the above pre supposes that DEG remains around $1.30 ($2 billion market cap) which might be wishful thinking. So the logical, and cautious, time for the bid by GOR for DEG is Q4 2023. Can they wait that long or will a major swoop before that time?
GOR Price at posting:
$1.64 Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)