I sent a very short form information memorandum to Callon and included details of AZZ's predicament.
Based on what Callon was trading on at the time, it meant an offer of circa $100m would be value accretive to Callon (based on 1P reserves). I informed them that a takeover bid or purchase of assets for $100m would likely be viewed very favourably by mgmt given the noteholder deadline of 31st March.
I never heard back what value they ascribed to AZZs assets but they would have been aware that they are up for sale.
Given that they just purchased these assets in the region, it is another example of a buyer overlooking AZZ. It does seem like there is some information about these assets that simply hasn't been disclosed.
On another note with BBEP down to 0.35US, AZZ should be out of cash this quarter (ie by June 2016). How they are asking noteholders to accept an extension for 12 months without even having the financial ability to last that far is well and truly beyond me.
I do now have contacts at both the ASX and ASIC, and hopefully the truth will be out for us all to see soon ...
and that 65% drop in BBEP could have paid for the Investigative Accountant. Instead we lost $4m in value and liquidity...
AZZ Price at posting:
50.0¢ Sentiment: None Disclosure: Held
