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NAL Energy Corporation T.NAE



TSX:NAE - Post by User

Comment by DMR001on Apr 24, 2012 2:41pm
299 Views
Post# 19829975

RE: RE: RE: NAL take over

RE: RE: RE: NAL take over

themangokid - you commented on my earlier post and the overbearing question (you raised) is why did NAL management support the take over (given they are to be trashed in the process) and I'd certainly like to understand that a lot better. What exactly was in it for them? I am not really sure that we will not all be better off if the merge is permitted to go ahead but I remain somewhat annoyed about the way it was orchestrated. 

I'd go to Investor Relations at NAL if I thought I could learn something but given the information publically available I doubt they could have anything else to say. And... failing any better explanation I am not in favour of the buyout. And yes, I agree the NAL BOD did not IMO act in the interest of the shareholders by endorsing ths deal, given the information available to me. I guess it's possible that there is some very good reasons for their action (like relevant factors I don't know) but as long as it remains hidden I can't understand it and hence, I can't support it. I guess I need more faith but I just don't have it in me.

What is more troubling is why no other suitor has come forward with a sweeter proposal given how cheaply PGF is getting NAL. I doubt very much you could buy all the NAL common share at a price of 86% of PGFs market price. It sounds like "skeletons in the NAL closet" but I can't see it given the DD that was surely performed and the fact that one of the senior executives of PGF came from NAL and knows NAL's assets well.

The pending buyout is also affecting the spare price of NAL Energy. It can no longer rise above 86% of the share price of PGF with the buyout deal sitting in the wings. So any benefit derived from the dividend cut in January to strengthen the balance sheet cannot show up as a better share price.

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