re: Ann: Shareholder Newsletter - March Quart...
asf,
for my thinking, I thought a lot of that was covered off already.
LNG dont have the cash to acquire. rather, they were looking at using some funds that are supplied off the strength of their partnership with HQCEC.
Given that HQCEC is a subsidary of CNOOC and China is substantially short of gas, it is entirely possible that LNG will likely find a customer for their chiled gas.
WCL rasied capital at an opportune time, the share price was up and sentiment was good. They could very well not even strike a deal with LNG, but they do have certainty on their balance sheet, which is very very important.
Assuming that the WCL share base was completely loyal, the rights issue offered all holders a chance to stop dillution of their holdings. This is important as it makes a revised and lower takeover price provide the same return as before. So for my reckoning, there is no such thing as a poison pen.
If anything, the poison pen you speak of has given WCL the upper hand in negotiations as they are free to prosecute any number of other strategies now they are again well capitalised.
I have sold some share as late to give me a better risk profile and still seek some upside from an LNG deal.
Cheers,
SF
WCL Price at posting:
37.0¢ Sentiment: Buy Disclosure: Held
