RE:RE:RE:RE:Broker Upgrades - EventuallyThe Norwegians are in at at $1.47 (100 million shares were issued to cover $147 million of that asset sale)
Whether they would take a lowball deal or not remains to be seen. They certainly have already taken a lowball deal to divest the oil sands assets to ATH.
They originally bought those assets for over 2 billion, a decade earlier and that doesn't include the money they sunk in to develop the assets over that period.
https://www.equinor.com/en/news/archive/2007/04/27/StatoilToAcquireNorthAmericanOilSandsCorporation.html By the time of the divestment, Statoil/Equinor had already taken substantial writedowns , and with the divestment, they booked an additional half billion loss from the transaction.
https://www.equinor.com/en/news/sells-oil-sands-business.html As for Brookfield, the premium brookfield offered to take BPY private isn't particularly substantial either (around 15-20%). Kind of a lowball offer for those investors who don't believe commercial real estate (office buildings and shopping malls) have much of a future, certainly during covid, and even post-covid.
https://www.reuters.com/article/us-brookfld-prpty-m-a-brookfield-asset/brookfield-offers-to-buy-remaining-stake-in-real-estate-unit-in-5-9-billion-deal-idUSKBN2991AO REITs (particularly commercial), like energy had a substantial bounce after vaccine news.
As for the Genworth MIC deal, both the first and second time around, the premium paid was around 20%
No one in this particular business environment is paying crazy premiums, the only exception that immediately comes to is the PE firm Apollo, paying an approx 55% premium for Great Canadian Gaming. That being said, casino stocks have been especially beaten up during the pandemic and they are for the most part wide-moat businesses and cash flow machines when things go back to normal.
ManitobaCanuck wrote: ThunderLips1 wrote: Have u been following any of the other M and A in the oil industry. Not much premium being paid so maybe they get bought for 25 cents.
Agree , not much of a premium being paid.Few questions though
1) Would the smart Norwegians Equinor sell their 20% stake for pennies on the dollar ,I understand they took it at 2$
So I guess it will most likely be a merger rather than a buyout with stock offered for stock.
Who knows one of the big boys might take a bite ,Debt is cheap for them and they could refinance the debt at lesser rates
Suncor maybe , CVE who knows .
Dont think anyone will sell below the previous yearly high though.
Look at Brookfield , They offered 21.5 and the stock price is now above the offered price