Weird Deal The deal valuation for 5% puts it at $460 million v $900 million market cap. So, if there is flowing oil discovered at 8-2 around $1 billion boe, Namcor is willing to sell down its 5% interest for half the market price of the stock? Why $2 million cash on top of the 5 million shares? Who is getting flush with cash here?
Logically, Namcor will also be selling down 5% interest in Shell and Total's offshore billions of barrels discoveries to regularize this weird arrangement. Never seen this happened in the O & G industry before.
The US regulator might shine a light on this deal's weirdness.