re: Ann: Withdrawal of initial T/O and announ... yep, good stuff...

re: Ann: Withdrawal of initial T/O and announ... yep, good stuff guys.
The sale by EIT is done and dusted.
L/B purchased the shares independently of the Offer.
they were paid upon completion of the S & P Agreement, which was dated yesterday.

And they only sold 50m to L/B under the S&P A, so they have about 3m shares left, which presumably they will sell into the Offer.

So no Option agreement.

Yes, L/B playing this hard ball now.
Whatever happens, L/B will end up with minimum of 19.99%

But what astounds me is:
- clearly L/B is desperate to get hold of WCL. Why?
Originally they made their proposal conditional upon WCL not signing the GSA. Ergo they wanted ALL of WCL gas.
Now that WCL has signed the GSA (and we are told it is definately BINDING), they come back with a FORMAL Offer, an INCREASE in price, and unconditionally buy 19.99%, AND, are putting up $178m without Due Diligence, and only real conditions being Chinese Govt approval.

So what's their game?
- either they think they can get out of GSA? Unlikely because GLNG would sue the crapper out of them, aND GLNG would injunct them if they tried to sell gas to others,

OR

- this guy is showing us why he is a billionare, and we are posting on HC?
He is buying WCL because he sees WCL situation as a no lose investment.
ie he has researched WCL and found it to be a viable business proposition in its own right.He sees it as undervalued, he is taking a long term view, and is will to inject the capital required to fully develop the field. He has seen the SP at ridiculously low levels, and swooped. He has tied up 19.99% at cheap prices from short-term s/h who just wanted out of WCL.
In addition, IF he is forced to comply with the terms of the GSA, he is figuring that he still has the ability to generate significants profits from the development of the remaining 2P and 3P reserves - PLUS he will have his sights set on the MPO fields owned by Petro (and they are mates).

So, he will get development funding from Petro, and probably J/V with Petro to further develop Meridian, and develop Mungi and the rest of MPO permits.

And remember, they will certainly retain the WCL mgt and staff ( because L/B and Petro do not have any experienced mgt in Aust capable of operating and developing these assets).

So in that way, Petro gets itself out of the hole it is in after buying the MPO assets for $42m, and then finding itself with these stranded assets.
*****************

so where to for us?
- see what WCl advise next week. Probably a "take no action"
- s/h cannot accept the Offer yet anyway, as it does not open until 8 May 2014
- s/h can sell on open market - but why do that if market price is likely to be less than 40c?
- imho, we are far better to HOLD until we see whether Santos or GLNG or anyone else eg NHC, come in over the top. DYOR

in my experience this could take months to play out.
The Offer does not close until 24 June 2014, but the Offeror has the ability to keep on extending the Offer for months and months - it could go for 6 mths!

we really need to see what NHC does.

Also, as I mentioned previously, if L/B do not get their 50.1%, they will declare the Offer Unconditional, and keep all acceptances.
They will then sit on their holding of 20% - 49%, demand a Board seat or two. and watch their profits grow.
They can then soak up 3% each year.

where is that Fat Lady now? I think she is standing up, and scratching her head, with an perplexed look.

cheers

cheers