RE: Very Quiet Considering What is Happening Southern Cross - the majority of the companies they have invested in were already private. Only a couple were public...and none were privatized (that I can see?). So there is no precedent for taking public companies private - not to say it couldn't happen - EEN just doesn't seem to fit within their core portfolio.
When you look at their strategy and previous investments, the investment is EEN clearly looks like 2-3 year flip. EEN has good assets, good management, but is just burden by their current structure of debt. This deal cleans up alot of their issues and gives them a couple of years to focus on revenue growth and earnings. I think most will agree, that when rig rates are 80%+, debt is significantly reduced, expenses are further reduced, EEN will be very profitable. Plus deal with SDI is starting to bear fruit. Southern Cross will then sell their stake to another major investor and move on to the next one....probably at a 1000% profit ($1.50) in 2-3 years.
https://www.southerncrossgroup.com/scg/where_we_invest.htm
"The common thread that connects all of the Southern Cross portfolio companies is the quality of the underlying assets. Southern Cross invests in companies who own assets that when deployed with a focused strategy will achieve a sustainable competitive advantage in their markets. Southern Cross will also evaluate investments in companies that enjoy strategic market advantages, but have been burdened by inappropriate capital structures."