Longford Energy Inc V.LFD

HHDOC

[EOIM]

My take on the first exploration period is that the inability of LFD to prove the existence of more than $30 million that would be required to drill 2 holes would likely put additional pressure on LFD management to negotiate with GENEL.

Even if they don't want an outright cash buyout, they may negotiate for a merger just like the old GENEL did with Ex-BP CEO Haywards new company Vallery to form the new GENEL ENERGY PLC. If they decide to take that route, the dilution to existing shareholders of GENEL would be minimal and the opportunity it offers to existing shareholders of LFD would be enormous because LFD shareholders would be exposed to a cash rich producing company managed by better people.

So if they evetually decides to merge in a non-cash transaction, the discussion would focus on how share exchange ratio. Maybe, 50 to 80 LFD shares can be exchanged to 1 GENEL share. GENEL trades at around 7.7 pounds (approx. $12.32).

If they decide an outright cash purchase, the better for shareholders who want cash immediately without the hassles of holding GENEL shares which does not trade in Canada & USA.

[EOIM]

Correction: Genel shares also trade in USA under the PINK sheet exchange. So those that eventually get GENEL shares can still exit it in the PINK.

[kaosblues]

Try more like 14 LFD shares for one Genel, if they are going that route. 

[EOIM]

This is where the professional asset valuators and financial advisors would do their work. The would assess the assets from each company and come up with an ideal metric before the managements decides on the premium. This was what old GENEL did before accepting the merger with Tony Hayward Vallery. TONY had a cash shell company with only around $2.1 Billion cash while GENEL had the asset in KRG

[vmldem]

What's the symbol on pink sheet? TIA

[EOIM]

Genel Pink Sheet symbol is: GEGYF