WestFire Energy Ltd T.WFE

Broader Markets Down But we are UP !!!

[goldensasky]

Lets hope this trend continues.  Loads of rumours in the oil patch about various deals but I think this deal is one of the more complex in the history of M and A in the patch.  Is Go a Pawn to get a deal done or is the deal going to go through.  That is the million dollar question.  I got an email from IR of westfire and he indicated circular to be mailed early next week and vote on Oct 22.  He said updates and quarter results to be released on the same day. 

Cequence (10 million dollar break fee paid in full) was also the pawn for Open Range and the break fee is about 15 million for go(if westfire is aquired) and 10 million for west fire (if galleon is aquired).  I noticed that Scotia is doing alot of purchasing and I am curious if it is for retail or a potential corporate customer.  The next month should be very interesting good luck and do your own due dilegence.

GSasky

[JohnJBond]

Sproat owns 35% of WFE, meaning 65% is held elsewhere.   Since 66% is required to approve a takeover, voting control cannot be purchased in the market - ie no one else can by WFE without Sproat approval, and I do not believe that would be forthcoming to a fair value offer.   No one else will buy GO - this deal is a god send for them.   In my view, this deal is as done as it could be

[barneyj44]

Appreciate your thoughts, holding on for better times ahead, also purchased some Sprott resource corporate.

[mckenzie00]

thank you for your insight gregory

[surfer55]

This deal is not done if WFE shareholders rally against it on Oct 22.  WFE shareholders are being compromised to rescue Guide.   If you truly want to get your price up, get your voting circular, and vote against the merger.  This will send the price of WFE up significantly.  The alternative is to wait for Guide to have their second chance and possibly do better than they

[nonvoyan]

I'm still confused how a smaller cap company take over a larger cap company at a discount over their share price?    This makes no sense to me other than Sprott being a shareholder in both companies and is looking to boost their Guide holdings at the expense of their WFE holdings.   

[surfer55]

I think that most people recognize that this is exactly what is happening, and since Sprott is a major shareholder they can play lots of games influencing the share price of both companies.    Rest assured that your interests, if you are a WFE shareholder are not aligned with Sprott's unless you hold a bunch of Guide shares that are going nowhere.

[nonvoyan]

Well according to Canadian Insider, Sprott controls 13m shares voting and 15m shares convertible (which they'll probably exercise.) There's 67m total shares oustanding... Now there's still Cadent which controls another 6m shares, and they don't have holdings in Guide:https://www.cadentenergy.com/portfolio.asp?Type=0 Let's see if there's enough apathy...

[heraclitus]

I am bored by the frothing of the Spott obsessed.  There is more to life that spinning never-ending conspiracy theories about a rather simple matter.

[nonvoyan]

Sprott also holds 16m shares in Guide...    Takeover deals like this don't just come along at a $53m discount from market value. And let's call it what it is; guide is taking over westfire seeing as though guide's management will be taking over newco.  

[JohnJBond]

  Terms of vote required to approve this deal Guide - 66.67% majority WestFire - 50% + 1 voting share majority   The difference, is because Guide is being takenover.

[JohnJBond]

FYI, the combined company will be run by the former management team of Penn West Petroleum (who just happen to have been running GUIDE for the last few months).  Including the co-founder of Penn West as CEO  

[surfer55]

This explains why they are calling it a takeover of Guide by Westfire, even though the managment of WFE are being terminated and then replaced by the management of Guide.  They know that a lot of shareholders of WFE know the deal stinks and they don't want it voted down on Oct 22.  The Guide shareholders are no worry because for them, the deal is a great one - rescuing this