The synergies would come with the balance sheet, i.e. lower...

The synergies would come with the balance sheet, i.e. lower funding costs with a rollup of the assets and liabilities and smaller overheads through cost synergies.

Short term however the deployment of capital for EPY is the issue, not the funding of it. Longer term refinancing there are likely synergies. However I just can't see SVR wanting to offer much of a control premium for EPY. A nil premium rollup script offer should be what they offer if that is the end game here and nudge SVR over the $400m market cap mark as they try to break back into the ASX300, which is still a long way away imo.

Otherwise SVR would probably be better off deploying their capital by just buying back stock on market around NTA rather than buying into EPY at a 35% premium to NTA. Kinda looks like SVR just picked up COG's problem at a sweetened price courtesy of EPY's buyback. Forecast interest rates cuts however make financing an appealing environment to be investing in and SVR are first movers. Any deal \would be pitched as EPS accretive.

I'm fence sitting as to whether this is good news or not for SVR. Nil to small premium roll up play and I'm Pro, Any decent premium and I'm heavily against.