NXS's offer for AZA is valued at $1.75 (plus 0.07 special...

NXS's offer for AZA is valued at $1.75 (plus 0.07 special dividend) at the current NXS sp $1.595.
AZA finished Friday at $1.59 approx 14% below the inferred value.
The terms of the offer work to limit the downside for AZA sp (ie, if NXS falls below $1.50 offer is capped at $1.61 +0.07).
But importantly, if NXS sp rises above $2.05 the offer value to AZA holders rises to $1.88+0.07.
The potential for this to occur is strong, given:
*NXS is trading significantly below broker valuations (eg, 12mnth target of $3.08 by Bell Potter Nov 07)
*A reserves upgrade is imminent following the Crux-3 success.
*Crux-4 & Libra-1 are being drilled over the next month & success there could substantially extend the Crux field/reserves and lead to a major rerating for NXS.

IMO AZA represents an attractive entry into NXS. Downside is limited but exposure to the aggressively growing NXS and their huge exploration potential is achieved.