- They will know that at $175m, the deal is very favourable to Extrata, (but at the same time, realise that Exco couldn't negotiate more from their bargaining position as a small EV company with limited options for development) and IVA want value for their investment.
- As to why they want all the cash returned to shareholders, I think this is to keep EXS from being a threat in the region in terms of potentially acquiring projects and smaller companies with good potential (QMN?, GBZ? etc). If they have 100m+ in the bank, EXS are competition in this regard, but with all sale money returned to shareholders they must peruse organic growth as they have done before (albeit from a good cash position anyway).
Perhaps it is the corporate equivalent of being a spoiler or sour grapes ...in reality, as a smaller company EXS will be much more nimble to grow and make more money for IVA as an investment.
The logical step for IVA would have been to get the dividend payment and use that to increase shareholding (as Lionel suggested to Ivan) and benefit from EXS primed for growth with smaller company size, great management cash.
In any case, it's good for us all that IVA want a better price for the Cloncurry assets -however it works out.
....just my two bob's worth.
All good fun ...I watch with interest.!
EXS Price at posting:
65.5¢ Sentiment: Buy Disclosure: Held
