RE:RE:RE:AVE.CN being acquired by Daseke...startegic buyer100% agree that Packers appeal is being used as a reason to do nothing but hope+pray for higher energy prices which is a lame strategy. Look at the history of some of the execs who left Technicoil after ESN bot them. They start out with a couple CT units and secure pvt equity backing and now are a N. American CT and fracking player with a 700M mkt cap...STEP Energy Svcs. That is an example of highly effective mgt.
A good reason for hiring bankers is to get a feel for what type of demand might exist...maybe a competitor, US operator or perhaps private equity. If a debt-bloated, low margin, junk like AVE.CN can get a 1.4x book bid with a potential teaser to as much as 2x book then safe to say a low debt/equity operator such as ESN could at a minimum expect the same. Ive reached out to several PM's who hold ESN in their funds but getting them to commit to anything of substance is like pulling teeth. Total lack of activist culture exists in the Canadian Instl world and the shareholders end up paying the price.
ESN lacks the balance sheet/contacts which would be necessary in order to reconfigure/customize some of the CT spreads for deplyoyment into the states. A deal with Trican would be our ideal transaction but STEP could certainly pull off an all-stock deal as well based on their hefty equity premium, relative 2 peers.
Cardboard1 wrote:
Garnut would lose his job so it is not in his interest to let that happen. So he will keep on using this Packers lawsuit now into appeal as an excuse not to do anything. Could it be settled for next to nothing? We will never find out.
Cardboard