One analysts take on current T/O situation.“Why a bid has not...

One analysts take on current T/O situation.

“Why a bid has not materialized: Given the recent wave of Perth Basin M&A, we are often asked whether STX could attract a takeover bid (particularly in light of Hancock acquiring a non-operated stake in West Erregulla). In our view, a bid hasn’t eventuated due to (i) STX’s larger market cap (STX deal would be at least double the size of WGO or NWE), (ii) larger, but at this stage under-appraised resource base and (iii) energy & utilities players have not yet gotten involved in M&A in the basin (e.g. Mitsui, WDS, STO, Chevron, BP – these players would be more likely to seek operated positions). “