Probably a bad sign that I am actually posting to a bullboard for the first time. However, given that I own an increasing number of Candian small cap stocks, these boards do occassionally turn up some relevant tidbits of information.
I just wanted to say that I find the opposition to the Pace / Avenex / Charger merger somewhat mystifying. I am a significant Pace shareholder and believe the shares are undervalued. I have accumlated my position over the past two years or so, including buying after the merger announcement. I also am a significant Charger shareholder, and accumlated that position because of what seemed to me to be an increasinlgy dramatic mispricing of their assets.
I would not be happy to give up my Pace or Charger shares at the nominal merger value, but think that owning these assets in a combined entity will be value enhancing for both sides. Pace has good assets and cashflow, but has been directionless for some time. Charger has great assets, but doesn't have the balance sheet to exploit them. And importantly, the proposed management of Spyglass has a long history of creating value through organic growth and significant M&A actiivity. Right now the junior O&G space in Canada is in a terrible state, and there is substantial opportunity for a good deal-making team.
If there is a new outside bid for Pace then great, and we can evaluate it then, but I doubt there will be anything other than a low ball offer, and I would much rather keep my Pace assets and join them with Charger and Avenex than give up Pace at a low price. If the Spyglass deal does go ahead I think there is every prospect for dividend income, organic growth, as well as value-enhancing M&A going forward.