Redtigerinc. Normally, shareholders "should" accept the recommendation of their Directors, who, normally, are in a better position to judge the issues involved much better than shareholders just reading the relevant material.
Clearly, there is action taking place with this particular sale. BUT, IMO, equally as clearly, by chopping and changing from offer to offer, our Directors are not providing too much confidence at least to me. Do we have a Dutch auction taking place? Could there now be ANOTHER counter offer from the Boustead consortium, or, have they indicated to the Directors that the offer that is on the table is their final offer?
I have no knowledge of the PT Enso Asia company, other than it is based in Jakarta and two very important factors, to me any way, is will PT Enso Asia be able to get government approval, which is waived by the consortium and will they be able to develop the new fields to generate any income from which to provide royalties? I liked what is in the Edge article that the consortium "claim" to have a record that can deliver on that royalty promise.
It is all very well PT Enso Asia offering these higher prices, but, I am conscious of the fact that it took a competing offer for them to raise their original offer. I, frankly, have never liked such "superior offers" and indicates some disingenuousness on behalf of the offeror and weakness in management for not being able to detect that there was potentially more on offer before they went to all the trouble that they have now been forced into.
BUT, the Directors have recommended acceptance of the revised PT Enso Asia offer and unless the consortium, or, someone else, comes up with a better offer, this last offer looks like getting up.
I, personally, would much prefer the consortium offer as it is far more definite, not requiring government approval as a condition and from what we know, are probably more likely to get production from the lease and to pay those royalties, albeit "less" than the PT Enso Asia offer "promises".
The Directors made absolutely no comment about those very important factors, even in the "advantages" and "disadvantages" section.
To me, this whole issue, while being a major positive for the company and us shareholders, does not reflect too highly on the ability of our Directors. Just my opinion, very willing to be proven wrong by how this pans out and what the management does when it is fnalized.
Hopefully, this lease IS as attractive as these competing companies think it is and that we don't end up losing both of them AND TEG!!!! Major test for Directors!!!
At least with all that selling @ .001, we must be getting close to clearing out all those that want out!!!
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