well ESGSAG seems to be getting more media attention than JG at...

well ESGSAG seems to be getting more media attention than JG at the moment.

-the FNN news on HC
- it must be in the AFR (according to FNN)
- and in the Australian

from todays Australian by Tim Boreham:
"Eastern Star Gas (ESG) 84.5cIN this era of protest, a corporate get-together promises some harsh words and the off-chance of a shareholder revolt.
Eastern Star shareholders file into Sydney's Shangri-La hotel on Friday to vote on the board's proposal to sell the NSW coal-seam gas hopeful to gas giant Santos.

The scrip offer of 0.06881 Santos shares for every ESG share currently values the target at 85.5c, a 43 per cent premium to its pre-offer value. But some of the 9000 holders are unhappy campers and have united as the ESG Shareholder Action Group, the logo of which is a fist raised in defiance.

The group is peeved that 3.7 per cent ESG holder TRUenergy is being offered a guaranteed sum of 90c a share, while the offer to ESG holders (initially worth 90c) has diminished in line with Santos's share price (it's now worth 85c).

The other is a post-bid increase in independently certified 3P gas reserves, of 244 petajoules.

"We have had a lot of people coming in wanting to vote no," group spokesman Paul Johnson says. "But we're saying only vote against it if you really want to be voting against it."

A broader grievance is that Santos paid $1 a share for a 20 per cent ESG stake only a year ago, so is being opportunistic.

But, as usual, there's plenty of counter arguments, one being that ESG has little cash and a big project to fund. If the deal doesn't happen, the shares will fall and ESG will be in a weaker position for an equity raising.

Maybe a higher offer would have emerged in future, but with Santos's presence on the register that was going to be unlikely.

Another consideration is that the farmers versus CSG debate in NSW -- which affects ESG -- calls for a bigger custodian well versed in "issues management".

It's hard to see this one being knocked back, even though assent is required from 50 per cent of holders by number and Santos can't vote. But the separate TRUenergy proposal could well be voted down, in which case Tru takes the scrip like everyone else. Hold."

- Business Spectator;
"Eastern Star Gas, Santos

Back to the gas sector, and the shareholder action group for Eastern Star Gas has made no secret of its displeasure with Santos’ $924 million takeover offer, with the Australian Financial Review reporting that it’s now contacting other shareholders urging them to vote down the proposal. Chief among their concerns is the condition to pay $284 million to TRUenergy for its 3.8 per cent stake in Eastern Star and 20 per cent share of the target’s permits. That drew the ire of independent advisers at Grant Samuel, but with a 50 per cent premium to the previous trading price and board support, Santos looks to have this won.

Speaking of TRUenergy, the company will undertake the $3.6 billion investment to build two gas-fired power stations for the Queensland government in Ipswich and Gladstone."

well done Nervous!