research reports, page-2

On 3 occasions I have had to request such independent expert reports and from much bigger firms than Deloittes for due diligence and arms length sales, on every single one, their opening gambit was "what do you want to achieve", they start at the finish line and work backwards to achieve your desired result.
At the end of the day it is a report prepared purely on the basis of assumptions, SGH and the directors of NXS are upbeat about the Macro LNG market and the tightening east coast gas market, Deloittes believe that the USA LNG market is a serious competitor for Crux etc etc etc. Deloittes warn you that selling Crux and LT individually may cause the loss of tax credits but guess what the tax credits have been de recognised, there is nothing to lose under liquidation but they fail to highlight that given the $400m SGH proposed spend, those tax losses will magically reappear as an asset. Deloittes bring forward surplus liabilities and corporate costs going forward but where are the long lead items. Fair enough Deloittes want to ignore the Shell put valuation for valuing Crux but why why why would they ignore MIMIs arms length purchase of a direct stake in a similar Browse project and why would they even consider that Crux may merely be a Browse backfill option for Shell, when the Unprecedented Retention Licence (LAW) provides that the development MUST be undertaken at the earliest time?.
I didn't know that Auriga and Caelum were mere exploration assets per Deloittes, my impression was that they are development assets or appraisal at worst, perhaps the accountants should have consulted with a geologist.
The report is full of assumptions (holes), at odds with the publicly disclosed position of NXS directors and SGH and therefore meaningless, prepared with 1 parties agenda in mind and to secure the statutory permission of the court to proceed.

It is not a simple matter of SGH raising the offer to 4c and compensating those who sold at 1.9c, they have acknowledged that they are bound by the finality of their offer, they have made considerable qualitative statements that they will seek to recover their bridging loan and notes immediately if they do not succeed, the directors have not only endorsed the bid and the findings of the independent report but also told you that if you don't accept the offer, they will put NXS into voluntary administration. These statements (bear hug) are hugely important in that they would need to be considered by the takeovers panel and ASIC, the current rules were developed and implemented to specifically protect stakeholders from this very type of intimidation and persuasion, otherwise why have the rules if they can simply be knocked over

Do not underestimate the powerful content contained in the public release of Mr Greig's letter, particularly LDMs alleged involvement in circumventing the introduction of PTTEP onto the register and his alleged valuation of NXS. The public airing of this alleged exchange is extraordinary and damning.