If GENEL Buys 40% of 40% If GENEL is buying 40% of 40% then it values LFD
at 81 cents on 182 million shares out.
40% of 40% = 16%
GENEL buys 16% for U$70 Mil. Therefore 1% worth U$U$4.375 Mil
LFD owns 24% x U$ 4.375 = U$105 Mil
With the U$ 70 Mil.......LFD pay U$27 Mil debt .......leaving U$43 Mil for drilling CHIA
Total value of deal = $105 + $43 = U$148 Mil
U$148 / 182 Mil shares out = 81 cents
GENEL values LFD at 81 cents per share.
If LFD invest U$43 Mil into CHIA it should increase LFD value substantially, because LFD will cash flow very soon.
Very Good Deal