NATO value It is my guess that they have given up on taking NATO to 10.5 trains capacity themselves and ramping it up to that level, at this stage they are going to build a fully functional 6/7 trains capacity operation and hand the terminal to a buyer, it would up to the buyer to complete construction to 10.5 trains and ramp it up based on their own schedule.
The press release made it very clear that they are in active divesture discussions, and I don’t see what’s to divest beside NATO, if they divest anything else, this means they will be doubling up on NATO and I doubt that fits the profile of the chemical focused CEO they just hired.
In mid-June CIBC issued a very informative analysis on NATO’s value and potential synergies with a multitude of potential buyers. CIBC valuation ranged from $400m to $620m, below is the breakdown:
Based on the above, CUS will likely recoup all of what it has invested in NATO and will likely generate a decent profit, a deal in the $500m range will fully wipe our debt and offer shareholders a stable debt free chemical producer, with enough balance sheet flexibility to expand its core chemical operations or buyback shares.
Regards,
Nawar