OTCPK:MGMXD - Post by User
Comment by
keubikoon Aug 03, 2017 3:34pm
162 Views
Post# 26544659
RE:Blue Lagoon Sales Process Terminated.
RE:Blue Lagoon Sales Process Terminated.The read-thru value on this is about $73 million net to AXY (CAD). Most analysts were in the $50-$60M range.
The partner is the Icelandic pension fund - I suspect they wanted to hang onto it for sovereign reasons but perhaps more logically the asset is peforming exceptionally well and is in the middle of a big expansion so perhaps they want to sell later. Or perhaps they didn't like who the bidders were (e.g. Russian oligarch who has been jonesing for this asset).
In the interim we get the cash flow and this asset will be worth more later.
AXY is still way too cheap.