When MIN gained EGO's asset in 2017 when they went into administration, I would suggest they got their 80% of LD1 for nothing but lost part of the loan facility of $15m but now in the fullness of time and success, its clear they got their 80% cheap.
MIN have been pretty active over the years with deals in this O/G space in this region:
Buying into EGO with a block trade of ERM Powers (19% holding) of EGO at a 45% premium in 2016
Tying to by AWE via a scheme of arrangement but ultimately loosing out to Mitsui with their 75% premium T/O 2018
Maybe a few others that LT holders would be more familiar with..
I think we have weeks till this discovery will be appraised and a good possibility further appraisal drilling required to test and understand the full potential of North Perth basin.
As this all goes on the SP will keep increasing on good news which is good for us holders but not MIN so I think they will come to a view pretty quickly that they need to act sooner rather than later and that because its early on, they can be very conservative as to the size of the reserve and company valuation and ultimately pay less...
If you look back MIN has been wanting to secure their own gas source for their vast WA operations for maybe 6 years and now with their ESG and zero carbon ambitions I cant see how you can have a partner like NWE in the mix as they don't have the same vision. The success of LD1 is agreat moment for MIN and realizing their vision.
My view is they wont go for a script offer as they have the vast amounts of cash and its much much cleaner..
I am hoping it happens later and later because MIN will be ultimately fighting the market with its expectations of an offer and a growing confidence in the size of the reserve discovered.
Interesting times ahead for NWE, and with the 20% holdings of MIN in NWE and being their largest SH its going to be fascinating to watch.
PS: If my memory has failed me in my accounts of the past please forgive me but highlight any errors.
NWE Price at posting:
1.8¢ Sentiment: Buy Disclosure: Held
