Look I just had this crazy thought and it's totally hypothetical. Now let me just say that I am a purely CMT holder and have never held KPL before.
But if I was Phil Mulacek (KPL 20%) I would be pushing KPL to do the following; (By making this suggestion I'm not setting a value on CMT although if I did it would be much higher.)
But here would be an opportunistic timed master stroke if there ever was one...
KPL has about 306 million shares on issue, and their current share price is about 25 cents. Let's say they voted to issue 77 million shares to make a 1 for 1 offer to takeover CMT, with a clause that the options expiring at the end of the year will be excluded of course. This in effect would give KPL 100 % of PPL 435 and 436 and 65% of Pandora without triggering the IES payment plus they get an extra $2.5 odd million in cash. Dilution to KPL would manageable to say the least, 306 to 383 million issued but the combined entity would something to be reckoned with. Then Phil's got another re-incarnation of InterOil on his hands.
This is exactly what I would do (I wish I was in his shoes). And if doesn't try something similar before the tide turns upwards I'd be a monkey's uncle. The beauty by offering a 1 to 1 parity which can only be done because of the ratio of KPL shares to CMT shares at the moment (a numerical opportunistic advantage 'aka it's cheap'), the only dilution to CMT holders would be their total percentage stake in the total enlarged combined entity which would decrease of course. A win win in my opinion with lots of upside for all players going forward.
Anyway, good to back..... (O:
This is definitely going to be an exciting one, when the time comes..
Anyway just a thought...
BDM Price at posting:
5.5¢ Sentiment: Buy Disclosure: Held
