GREY:RNSFF - Post by User
Post by
derpaon Apr 26, 2021 6:08pm
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Post# 33071573
Terms of the Merger
Terms of the Merger Recon Africa gets 17% more land for an 11% dilution. This was as much as admitted by an employ of Recon Africa in an email that was recently posted on one of the discussion forums. If I remember he placed the land accrual to 15% but he probably forgot to take into account Namcor's 10% participation in Namibia. Now of course one could argue that Namibia is already tested whereas Botswana is more uncertain. Hence the discount on a per acre basis.
Yet in this case we don't only have a case of a "haircut" on land holdings; we are also assigning a zero value on all of ROE's operations and leases in Mexico. Current operations of 1.200 bpd plus a partnership (with lumpia) in a 25 year lease to a valuable onshore field. Hence I think a more fair deal would be as follows. Spin off the Mexican assets to a separate company and allocate the shares to ROE shareholders.
For disclosure I own shares in both companies