probably the biggest deal-breaker when STX proposed a merger/takeover for WGO, was the value attributed to WGO's Spanish assets.
As you say - STX not interested in the Spanish assets.
But look at the latest series of WGO announcements.
"..Warrego’s UK team is currently evaluating a number of strategic options to unlock shareholder value from the El Romeral and Tesorillo projects, both of which include gas discoveries and are close to excellent infrastructure and markets with high demand for gas and power..."
WGO is clearly looking to separate the Aust assets from the Spanish assets.
That would solve a number of issues.
It would give a clear line of sight between overseas assets, and the comparative value of WGO's 50% interest in WE, and that of STX 50% interest.
ie it is easier to value WE.
That's important, because it removes the stated impediment to a merger of WGO and STX.
I think once the Spanish assets of WGO have been removed from the WGO balance sheet, that STX will start a discussion again.
A merger STILL makes so much sense IMHO.
WGO Price at posting:
22.5¢ Sentiment: None Disclosure: Held
