Would you be happy for a new bid of $6.00 without a new share in Dart Energy? That would value Dart at $1.30 per share.
On the other hand, would the new bidder be prepared to pay significantly higher than $4.70 for 70% of the Australian assets and sharing gas with Shell? As for Dart Energy, I would not think Shell is prepared to surrender the 50% farm in of any international discovery if the new bidder succeed.
I have a strong feeling that ND and team may not have fully disclosed to the market on the true potential of the international assets.
Remember PES for which AOE had significant interest took only two years to prove their reserves and the SP rose from IPO @20c to the final takeover price of $8.25. I am sure ND and team would have made some decent profit. After all AOE made the first bid on PES @$4.50(or therabout).
It appears ND and team is happy to take the $4.70 cash now in the pocket as the "first instalment" from Shell, and wait for AOEI to deliver the Christmas bonus.
I believe the time frame for AOEI to replicate AOE will take much shorter time now. AOEI may be worth 30c now, but in two years time, it may be worth more than $4.70.
DYOR
AOE Price at posting:
$5.04 Sentiment: LT Buy Disclosure: Held
