Australia's largest stock trading and investment forum Australia's #1 stock forum

MEO

0.00%

0.0¢ meo australia limited

new strategic direction and repositioning of meo, page-9

First 9 Last

Share
Profile

Follow
IFINO

784 Posts.

29/09/14

13:24

Post #: 14043214
Share

Originally posted by agentdownload ↑

Hey tonik

Thanks - I enjoy reading your posts.

Imho something is not worth what you paid for it, or what you think it is worth, or what someone else thinks (or writes) what it is worth, however, something is worth what someone is prepared to pay for it. The classic line packer used was you only ever get one Alan bond in your life....

The selling of TS LNG and TSMP projects is the game changer for meo. There is, imho, no way any investor is going to pay half a billion dollars for TS. The TS value realisation announcement peaked a sp peak of mid 8s and quickly ran out of puff...

So what will be in the deal and how much will be the price? Splitting the two might sound nice in theory but from a legal perspective very messy - how would two independent parties manage tslng and tsmp separately - sorry but is not going to happen - the risk profile on that dd would be fire engine red.

When the bean counters run there fingers over ts the most logical view is a TO of meo. why? There is several hundred million in capital tax right offs that would be transferable. That alone is a big risk for all employees of meo!!! So a TO offer of $0.20 would see a market cap of circa $175 million. Issue for eni is that 50% holding of Blackwood may and I repeat may preclude eni from a TO - posters will say this cannot not happen but unless you have seen the JV contract then there are no guarantees.

I would prefer no TO and still get circa $125m for TS - meo can throw heron and blackwood in as part of the deal as that is part of the strategic repositioning of meo - searching for the hidden gems like beehive. $140 n the bank and we reset back to circa $0.20 with a mantra 'meo never sole drills any well ever'.

If eni does decide to take up heron and/or Blackwood then this will complicate matters for meo as eni has called meo's bluff. Luckily for meo, heron and Blackwood are just noise in the deal as eni has a massive asset called ES and eni is keen to fast track the to market process. eni have done meo a lot of favours re drilling and testing both heron and Blackwood. eni, imho, will be pragmatic - let's just hope JH remains in the departure lounge and the chairman gets us all a good idea by re-doubling his efforts.

If a deal can be done it will be very interesting how long it will take to an asx announcement can be made. If JH gets up at the agm this year and says that Santa is coming early we will all know what to think...

adl

Expand

adl
JH in departure lounge.
RZ lined up at the counter buying a MD Ticket.
UBS already doing some of RZ's workload.
Who knows ? Just guessing.
Could be interesting pre Christmas for un- obvious reasoning.
As I said earlier anything is possible.

Cheers IFINO

MEO Price at posting: 3.4¢ Sentiment: Buy Disclosure: Held
2 Upvote

0 Great analysis

Reply

Top Stories

ALR

Altair Minerals hits high-grade copper and gold at Wee MacGregor, QLD

PTR

Petratherm adds $1.6 to the piggybank ahead of SA titanium drilling program

WMG

Western Mines identifies 2 high-grade zones at Mulga Tank in WA

SNG

Siren Gold boosts antimony resource by 66% to 14.5Kt at Auld Creek, NZ

WR1

Winsome scoping study proposes low-cost operation for Adina lithium project