Post by
nizza on May 29, 2024 2:00am
PP and the possible role of Fortescue
Fresh capital is needed for drilling. So far, Fortescue has always secured new shares through
financing. That was a cheap way to get to 20%, then 25% and finally 31% of the company's shares.
Why should it be any different this time? Depending on how much money is needed (I estimate 10 -
20 million CAD) and whether Fortescue is committed to financing, Fortescue's shares would
probably exceed the 40% threshold. If they wanted to make a takeover offer, it would be better to
make one after the PP than before.
From Fortescue's point of view, I think that would make sense.
Or not?