erm and its stake in mel

Hi all,

Found this article in today's The Age.

I like in partilcuar the snippets below. It reminds me so much like STOs initial stake in ESG many years ago. The expection being that MEL has better assets, and from a limited supply (gas) to increasing demand equation, share price should increse significantly - in my opinion.


ERM has also boosted its exposure to the gas sector, largely via joint ventures in Western Australia, while taking a large position in Metgasco and Red Sky Energy, in which it has taken a 9.5 per cent stake.

Both explorers are seeking to develop gas reserves in northern NSW.

''We are preparing the [gas] business for possible listing on the ASX within two years'' due to the different risk profile of the gas business compared with its utility assets, ERM Power told investors yesterday.

Is ERM looking at floating its gas division? It has to get MEL reserves first!!

Read more: http://www.theage.com.au/business/flush-erm-signals-east-coast-power-play-20120821-24knm.html#ixzz24EDtKlPI


http://www.theage.com.au/business/flush-erm-signals-east-coast-power-play-20120821-24knm.html

Cheers

Mr P