Right on time too.Now, they will have to reschedule or as you...

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Cosmoterios

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17/02/21

14:36

Post #: 51080405
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Originally posted by SilentPartnr: ↑

OG,

FAR never really had finance for Sangomar, Refer to their 21/2/20 Preentation Slide 9:

"Debt and equity arrangements are progressing as planned and final documentation expected to conclude mid year"

Debt financing update for Sangomar Project
 Underwritten US$300 million senior secured reserve-based lending (“RBL” facility from Macquarie Bank, BNP Paribas(3) and Glencore, each to the amount of US$100 million, for the Sangomar Field Development offshore Senegal.
 FAR intends to select its preferred provider of junior debt in the coming weeks with assumptions similar to our presentation of 12 Dec 2019 (including a margin over Libor of 12.5%)
 FAR anticipates a total funding facility of US$600m

Key terms for Senior Debt Facility

Facility amount • US$300M

Timeline • Targeting completion of documentation by the end May, 2020;" This is for the senior facility!

The banks would not have finalised any loan until the additional US$300M had been secured for junior debt. That is what FAR had not secured and why the senior facility fell through ie. the senior facility was probably binding on the condition that FAR obtained the Junior facility and probably other conditions also ie hedging etc.

My main concern wrt shareholder approval for the sale to WPL is that FAR has arrange significant timeline for it to be able to obtain a better offer, but now with a significant improvement in the oil market over the last 3 months, it does not seem to want to take full advantage of that timeline. From the explanation notes to the AGM:

"FAR is presently contemplating completion of the Transaction at the end of January 2021. However, the timing of completion cannot be definitively determined at this time.

As a matter of prudence, the Transaction allows for up until May 2021 for satisfaction of the conditions, although this length of time is not expected to be needed."

I don't know what the "critical path" timeline is. Perhaps the could amend the resolution to say:

“That, for the purposes of ASX Listing Rule 11.2 and for all other purposes, conditional approval is given for the disposal of the Company’s interest in the RSSD Project on the terms and conditions set out in the Explanatory Statement accompanying this Notice. The conditional approval comes into effect at such time that FAR management consider they no longer have sufficient time to complete the transaction if they continue looking for an improved offer”

In other words approve the sale to WPL but only when time has run out! No further meeting required!

Regards

SP

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Right on time too.

Now, they will have to reschedule or as you suggested get "Conditional" approval.

Its a good idea....you should contact FAR. Maybe you will be employed....might get better value.

FAR Price at posting: 1.1¢ Sentiment: Sell Disclosure: Not Held
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