The Vote I suspect the LFD shareholders vote will be open and general with respect to the final buyer; so it appears LFD shareholders are not being forced to vote one way. This is probably more for legal and exchange reasons then anything else.
That is LFD shareholders will probably vote on the following or similar statement
“Sell all CHAI assets to GENEL or others at a price of $65 million or greater; with the first $26 million paid to KRG and the balance to LFD”.
If another LFD high bidder can get KRG approval before the Long Close Date of mid June 2012, then they would buy CHIA.
However, GENEL will become operator regardless who buys CHIA. That fact has to be accepted by any new bidder. I suspect GENEL wanted to be operator more then anything else; so they could be a key leader and player in the consolidation of Kurdistan. GENEL wants to be able to compete with the Super Majors and other National Oil Companies.
Most Kurdistan oil concessions have an entry sale price of $25 million for 20% payable to KRG.
The fact that LFD has invested $70 million into CHIA means a higher bid price is possible.
Probably the KRG does not care what Major buys CHIA as long GENEL is the operator. In fact the KRG probably wants more Majors to enter Kurdistan.
I suspect the KRG wants to install a pipeline from southern Kurdistan CHIA to TAQ TAQ and that is a large driver in this deal. That is why GENEL will get Operatorship.