current offer significantly undervalues bow, page-29

Seamfiend

I have no idea whether you are valued at $2,000 or $5 million but in determining whether you are talking yourself up to your buddies I would ask a few questions and then do some further research.

E.g. If you tell me that you flip burgers for a living, and that as a reference point a person who flips burgers earns $5.00 per hour, I think that you are being unrealistic on whether you will be able to achieve your target/value of $5m.

If however you tell me that you are the CEO of an ASX20 listed company and as a reference point I know that the typical CEO earns +$5m, I think that you are being realistic on whether you will be able to achieve your target/value of $5m.

My point is that when placing a target/valuation on assets it is important to use reference points of similar transactions.

I DONT think that using the multiples achieved in 2008 - 2010 are valid given the change in economic conditions.

I DO however think that using a reference point which was the basis of a takeover offer just 5 weeks ago is valid!

I would be happy for some more information from other investors of the justification of why ESG's assets are 2.33 times more valuable than BOW's ($0.15GJ instead of $0.50 GJ).

I agree that STO already owned a 20% stake in ESG so it wasnt really a $0.50 cost to STO and that a script offer needs to be higher than a pure cash offer as investors take on market risk of STO's share price until the deal is complete.