Meijin Energy pulled out of its offer for WDR. Not sure if Meijin has switched its eyes on us SHD, as we are like 4 times cheaper.
Advantages to takeover SHD are: 1. Jerry Ren owns 78% of the company, getting consent from him would make things easier provided the right premium is offered. Plus Jerry is ex-Sinosteel, so connections can be there as well. 2. We are closer to railway which leads to the Port of Darwin, which previous indications we have an allocation of 2mtpa facility. 3. Buying SHD with premium is third of the price offered to WDR 4. Given the quarterly maintains DSO production in late 2013, this is also an advantage.
Not sure if everyone realises that SHD was on the news in the AFR a few weeks ago, both Jerry and Rodney run a shale gas company planning a listing eventually. http://www.australianoilandgas.com.au/
SHD Price at posting:
7.1¢ Sentiment: Buy Disclosure: Held
