Longford Energy Inc V.LFD

If GENEL is Buying 40% of 40%

[1BestPicks]

If GENEL is buying 40% of 40% then it values LFD

 

at 83 cents on 210 million shares out.

 

Slightly more shares may be outstanding if higher priced warrants and options get exercised

 

40% of 40% = 16% 

 

GENEL buys 16% for U$70 Mil. Therefore 1% worth U$U$4.375 Mil

 

LFD owns 24% x U$ 4.375 = U$105 Mil 

 

LFD pay U$27 Mil debt leaving U$43 Mil for drilling CHIA

 

Total value of deal =  $105 + $43 = U$148 Mil

 

U$148 / 182 Mil shares out = 81 cents

 

GENEL values LFD at 81 cents per share.

 

If LFD invest U$43 Mil into CHIA it should increase LFD value substantially, because LFD will cash flow very soon.

[Fnord]

/facepalm

[alstra32]

No offense, but get with the program. it is for LFD s 40% not 40 of 40. Just read how Genel operates!! They have the $ and want control. Why in Gods sake would they not have offered more to get more % to get control if you think they would go though all the legallities etc etc to gain a misely additional 16%. Think about it, offer another chump change amount and gain control.  NO- WAY

[Fnord]

Yup.  I can't belive the contortions people are going through to twist around such a straight-forward statement.  The statement is unconfirmed anyway, so give it a rest folks.  We'll know soon enough.

[RockLobster1]

Then I calculate the deal worth $37.22 per share of LFD.  Plus a new car. . We're all rich!  I just sent an email to my boss telling him take that job and shove it! . Hope my calculations are correct.