RE:RE:RE:RE:RE:Return of Capital TimelineIt has been more than a month that the announcement has been made. I was initially pissed by the vagueness of the announcement, but realize that it was necessary and the decision to split is probably a prudent decision.
1. Given the upcoming energy and mining boom cycle in PNG there will be significant foreign investment (see recent Japanese exploration company accquiring Papua LNG stake) coming into the country. HWO's PNG operations are an extremely attractive accquisition target for many much larger companies but there is no way they can accquire unless the PNG operations is decoupled from rest of the company.
2. The plan to sell Canadian operations was probably a precurser to this privatization initiative. I feel it is not Cyrus but another 3rd party which is taking the PNG operations private but the condition was to decouple.
3. No better use of cash in current energy climate and volatile global economy.
All in all, I am certain that we will get a cash offer in August followed by another cash offer for the remaining Canadian assets soon after. The entire company should not sell below $2.3-$2.5/share coservatively and about $3 for a compelling offer, but we need to have the paitience to hold till the entire salvage sale unfolds over the next 2-3 quarters.
I have significant ownership of HWO and will vote YES if the valuation of PNG stub aligns with these numbers.