Now that a firm offer is on the table it's time to consider the positives. 1. It would have been hard to have a bidding war against an offer that was "indicative" and "non-binding". Now there is a firm offer on the table then that provides a solid basis for any other offer from whomever. 2. The dating of the proposal extends into January which allows some time for other parties to emerge or any sort of reserve upgrade. It also allows 12 months to expire for those involved in the last capital raising to reduce their capital gains by 50%. 3. It also gives some peace of mind that Arrow won't walk away from this hence preventing any sort of price correction should they have not proceeded any further. 4. Although most would agree the price offered doesn't reflect true value nevertheless it's still 100% better than the SP of a few months ago and who knows where the SP would be now in these current conditions if there had been no offer. Dart energy isn't exactly firing. 5. It is still worth remembering that BOW is still in the exploration stage and while most think the prospects are good nevertheless as an investor it still sits in the speculative basket which means there is the potential for both good or bad surprises. 6. Management have as much to gain or lose as anyone so it's fair to presume their acceptance of the offer is a result of weighing up all options and thankfully with a caveat of "subject to no superior offer".
All in all things could have panned out a lot worse and while personally I don't expect much, if anything more than the current offer (certainly nothing over $2.00) nevertheless CSG has been an interesting ride and it's time to try and find the next "hot" commodity - maybe rare earth! (just kidding).
BOW Price at posting:
$1.47 Sentiment: Hold Disclosure: Held
