I haven't had time to read all the posts and apologise if someone has already raised the point.
If the GLNG JV is planning on acquiring ESG, STO may see itself as a net seller of ESG (& PEL 238) as opposed to a buyer.
If the other GLNG JV patners buy 79% of ESG in a takeover excluding STO's holding they would hold 51.35% of PEL 238 (0.79 x 65%). STO controls roughly 48.65% of PEL 238.
Its quite complicated as I see it but essentially STO has to sell its 35% holding back to ESG and it will want a fair price for it i.e. more than an additional 9% in ESG (taking it up to 30% shareholding in ESG) .
As things stand, ESG's share price may not reflect adequately the potential value of PEL 238 from STO's perspective. Then extrapolate this to the value of STO's 35% and there is a disconnect.
This throws up more questions than answers for me. If I'm on the wrong track please let.
Does this create a point of conflict between the JV partners with STO wanting to extract a fair price for its 35% in PEL 238.
I have to think this through but pressed for time.
ESG Price at posting:
77.5¢ Sentiment: Buy Disclosure: Held
