JS Add this bit of broker reasoning of the move on ESG." Badly...

JS

Add this bit of broker reasoning of the move on ESG.

" Badly timed acquisition of ESG:
STO's move on Eastern Star Gas just as community opposition to CSG in NSW is reaching fever pitch appears ill-advised:
This deal merely reinforces the view that STO is disproportionately exposed to the growing environmental risks surrounding CSG. However we note that PNG contributes more to the STO valuation than GLNG. What?s more, we note that only 20% of STO's valuation comes from CSG. This compares to 31% at ORG.

We suspect the timing was driven by TRU's desire to secure gas supply to complement its recently acquired generation assets ahead of a potential local listing. Given the benefits that TRU brings to the transaction, STO may have deemed this sufficient justification."

Cheers Mattocks

PS ESG share price still tracking STO initial offer conversion by 1.5 cents discount so the market is not pricing in a second bid or revised bid AT THIS STAGE but it is early days. STO goes ex divy this week so its price should lift slightly and drag ESG up a bit [ Excluding outside influences ]