RE:RE:Voting For or AgainstI'm voting FOR the transaction for two reasons:
1. Oil prices have been cratering. We have a deal on the table that gets us $1.012 cash back, treated as a return of capital so no tax. That reduces our exposure to recent oil price decreases to only the remaining stub of CanAsia. At current prices of $1.16, that means they are being valued at around 0.15 per share. Without this deal, we remain exposed to further oil price decreases with no cash returned.
2. CanAsia shares are likely to be worth much more than $0.15. With projected shares oustanding at 49 million, that means a market cap of around 7M, which is just around the working capital, with no consideration for the reserve value, which is much more.
In cases like these, usually the sum of the parts is worth more than the whole, so from a special situation perspective, I would anticipate CanAsia will trade for more than 15 cents. So it removes a lot of exposure to oil price risk, which still allowing opportunity for upside potential.
Anyways, those are my thoughts. I am more of a special situations investor though, so my time horizon is likely different than others here.