Roadshow Preso Aug 2021, page-6

Yes, it reads like it is a strategic acquisition being considered.
And the I dont think the market particularly wants an acquisition - I just want the cash flows to be realised and paid back to shareholders, or a capital buyback to be enacted (given how high the cost of equity is at the current share prices)

Surely the dinosaurs haven't hired Fosters to broke an acquisition funded by scrip (share price is almost at cash backing - no acquisition is going to be value accretive).

But then it also lists all other possible options, for complete ambiguity - e.g. organic growth, sale, asset swap (by the way what do they think this is - gumtree for old sports cars?)

Its like they have no idea what they are doing, so have listed all hypothetical options.

Perhaps the dinosaurs have just pulled out a chapter from an old corporate finance textbook - and have just inserted random strategies, for the sake of justifying their salaries.

1. Does an acquisition really make sense in this market, given our scale. Even if it did, how will OEL fund it
   1. Debt - Dont think this is an option (Without taking on too much risk)
   2. Cash - What are we going to get with our smallish cash reserves. In any instance, how much value are they going to find (relative to a buy-back of our scrip, given the value proposition which analysts put at 300% from the current share price- i.e. why not use cash to buy-back our own shares first)
   3. Scrip - hell no, not with analysts saying share price is worth $0.03.
2. Asset swap - this is not gumtree. These are not old sports cars
3. Sale - YEs please, get rid of this team
4. Organic growth - yes, (but not within our control, up to the operator of our assets)