NVA is a shopping market for POU
NVA has a debt issue, and debt maturity issues in the not to distant future. A good strategy for POU might be this, as NVA is feeling the squeeze we should be a good neighbor and help them out a bit with their finances.
POU could buy an asset of two from NVA, this would provide a direct cash infustion and let the share price appreciate or maybe even double. NVA (350 - 7,00)
POU buys Bilbo, they bolt it onto Karr, they give NVA 250 million dollars. The NVA stock goes to 7 dollars a share. We sell our shares for 280 million and we get Bilbo for free. Or maybe their is a different NVA asset we would want?
NVA has not diluted thier share holders, they are ramping up at Pipestone, the bonds and debt over head is removed from the company and it is a win win. Small production setback but Pipestone will be fully funded for rampup.
NVA wins the balance sheet is fixed and they have not issued a bunch of shares.
POU wins, the nva shares go to 7 dollars, they unload the 280 million in shares and get a quality asset, sell their NVA shares, and add 15,000 boe of production.
That in my opinion is a good reason to hold the NVA shares, then POU can use the NVA assets as a department store they can pick from. Any asset they puchase will benifit POU in NVA share price appreciation. It like POU is on both ends of the deal.
IMHO