The TPT share price will need to be north of 25 cents for me to vote positively for the takeover. I can't speak for others but that seems to be around the average opinion for JKA holders on this site.
I think that most of the JKA holders realise that potential of Morocco. However, most holders (including myself) have been burnt by potential before. JKA offers a much lower risk profile for a much lower potential return. I am comfortable with that, and according to that risk profile I have invested an amount I am comfortable with.
The joint entity will have a different risk profile, but if the merger goes ahead (short of selling) I have the same amount invested, discomfort sets in. If the merger goes ahead I will sell down (not to zero but to a comfortable exposure to the risk level) and then if, as everyone must expect it does, the Morocco well is not successful then I will buy back in to what will essentially be current JKA assets + some cash.
Even though both companies operate in the speculative oil and gas sector (and as of this morning focused in Africa) there are some stark differences that are probably driving the wedge between the two shareholder groups. The merger will leave existing JKA holders overexposed to a higher risk proposition, conversely existing TPT holders will feel underexposed to a lower risk proposition.
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