Reply to autofocus11autofocus11 wrote:
Not just TOT wants out, but TECK too. Let them spin it off, and if there's little investor appetite for the new entity and its stock price tanks, SU can step in and buy it on the cheap. But by no means should SU pay an elevated price these companies are likely seeking for their stakes in the asset.
Not really a surprise here with Tech announcing this. They've been sitting on this idle asset trying to decide WTH to do with this asset for years. Ever since TruMoron & his merry band of imbeciles came into power and started putting up roadblocks & making a mess of things in the O&G sector. What's surprising really is that it took Teck that long to decide. I'm guessing here that as usual the backlash, stigma and "image" of holding such an asset was too much for Teck to tolerate any longer & THE deciding factor. As the ESG angle has become more of an issue and in the spotlight much more frequently in the past two years. In addition, those big American insititutional investors, most of them who have jumed onto the ESG bandwagon for their survival, have probably blacklisted companies like TECK, as have the US Gov't, and will not invest in them if they have something like "Heavy Oil" or "Canadian OilSands" on their books.
Smart move by Teck, as it was the case for Total, but albeit a little too late.......I'm guessing they will take Total's shrewd approach and spin this out as well waiting for the opportune moment & price to off load it. Don't be surprised if they actually try to almagamate this asset with someone elses. Look for guys like Suncor & Cenovus to either do the same or double down on some of these lucrative but problematic assets.
GLTA