p 26 fin review - possible bidding war for esg, page-17

no doubt the pressure is on STO.
They do run the risk of paying a very high multiple only because the sector is hot again, the sector has been de-risked in the last 3 weeks, and the scramble is on again.
Also, STO would probably be more aware of the potential resource being developed by ESG and what may look like a high price to you and I, may in fact be reasonable based upon their info.

Throw in the strategic importance of Gunnedah to STO - just look at their recent presentations, and, as we said all along, the economics are far better building 3 or 4 trains than 1 or 2.

ESG is possibly the last, more advanced, CSG companies with a strong and growing resource. The others are either smaller, with lower future potential, or just too far away from a meaningful compliant resource.

Given these factors and STO's history, you can bet that they will fight tooth and nail to get ESG. And they will be made to pay. 1 for 6 sounds like a dream, however, funnier things have happened, particularly as ESG will surely be rolling out increases is reserves. Each increase will justify STO's decision to pay $2.