re: Ann: Letter to Orion Shareholders re EGM ...
buddy
For once I have to somewhat agree with you. Santos do have influence and their 35% JV partnership is also significant.
But there are very significant differences between the OIP/ESG and STO/ESG situations. OIP was floated out of ESG and many of the same people have been on both boards. Santos does not have ESG board representation as Yaq has frequently pointed out. When OIP was floated ESG kept a 22.3% holding .. the intention was always IMHO to control OIP.
It is true though that if Santos were unhappy with what ESG was doing that they could call for a board spill like any holder of > 5%. The fact that they haven't objected to anytging that ESG is pursuing (eg ERM and other MOUs and LNGN) says that Santos is onside and supportive. This tallies also with what Yaq said the other day about ESG having enough gas to supply power gen in NSW and send gas to Qld (or do a gas swap) as well as pursue LNGN.
The test of the relationship will be when(if?) ESG signs a deal with an LNG project other than GLNG.
H
ESG Price at posting:
68.5¢ Sentiment: LT Buy Disclosure: Held
