it seems to me.... it seems to me that from the news releases (we should wait until it is official) it is rather straight forward. longford has an asset which is a 40% interest in chia surkh. genel is going to buy that asset from lfd for $70M. Once the deal is complete lfd will own zero of chia surkh. lfd will be a cash rich shell with $70M cash and no other assets.
what will lfd do next, with its $70M? who knows. however, vst last week surprisingly announced they were going to extend the closing of the private placement. the first tranche closed (stan bharti put $500K in). i would guess that lfd might put $2.5M into vst in the private placement (at $.05) and have continued exposure to kurdistan. if you figure out what chia surkh was valued at by genel and then see what vsts market cap is for its 25% interest in qara dagh, the financing at $.05 is pretty attractive. i guess stan b did the math and thought so as well.
what lfd does with the rest of the $, who knows. perhaps a special dividend (i doubt it), or perhaps it is a financing vehicle for many of the other F&M energy group deals (kinda like aberdeen).such as exile, sagres, stetson, forbes coal, irati, brookwater etc. etc. that could be interesting. im just speculating here. tomorrow should be interesting.
hey hope/pray, see i did play nice! thumbs up to 2012.