IMHO Santos does NOT want ESG to be tkaen over by anyone else! If it happens then HGO (who are no longer shareholders in ESG) get 50% of the takeover price above the $1.00 they already received. If STO takes over ESG HGO gets 100% of the amount over $1.00. Both these things happen if the takeover is within 18 months.
Another way to look at it is there is very little disincentive for STO not to take over ESG in thye next 18 months (or much sooner) .. they would have to pay HGO the difference for their 19.9% .. but in the scheme of things they would have had to do that anyway in a more "normal" situation where there wasn't a seller like HGO with 19.99%wanting to lock in the $s ahead of any takeover.
Who knows what will happen. But my take is that from what STO said last week and again today .. the resource that ESG (and STO) have is HUGE and STO will not want this one to get away. I would not be surprised if STO has already indicated to ESG it will happen once funds are freed up (as Holy has suggested). The fact that HGO let itself go just under 20% a few months back then hey presto STO buys their holding .. is just tooooo coincidental. Its obvious they have all been sorting out their arrangements for a while now.
H
ESG Price at posting:
85.0¢ Sentiment: LT Buy Disclosure: Held
