RE: RE: Reliance selling /maybe Block 9 might seem small to them after a deal like this.
CVI has $75 mm and 50% of the concession. It has 100 MM shares so at say $2.50 it is worth $250 MM -75MM=$175.
So RI's value of the concession would be only 50% of CVI which would be $87.5 MM.
So, as someone mentioned it will be interesting to see what their share sells for if it is sold.
Nov. 21 (Bloomberg) -- LyondellBasell Industries, a petrochemicals and fuels company, said it has received a preliminary non-binding offer from Reliance Industries Ltd. to acquire for cash a controlling interest in the company.
“This offer is in addition to the previous non-binding equity financing proposals received by the company and represents a potential alternative to the initial plan of reorganization previously filed by the company,” LyondellBasell said in a statement.
It said its management will work with all parties “to design an approach that maximizes value for the company’s creditors through the pursuit of a confirmable plan of reorganization and enhances the financial strength of the reorganized company.”
Reliance, India’s most valuable company, said Nov. 9 it is examining “several interesting opportunities” overseas as companies roiled by the world’s worst recession since the Great Depression struggle to maintain cash flow.