Hi Share Traders
I'm obviously not going to go beyond the information released to market about the substance of the offer - but I am going to defend the honour of our independent directors.
I am disappointed by some of the comments made in here today and the derogatory ones reflect poorly on the people making them. Naturally you are welcome to your views about the transaction but it's possible to make up your own mind about value without impugning your directors.
A couple of points:
I urge you to consider the independent appraiser's valuation. The independent directors have been crystal clear that they wouldn't recommend a price below the independent valuation. The appraiser is now preparing that valuation, but the independent directors have taken commercial advice, which would include an estimate of where any independent valuation was going to land.
Everyone will be sent a copy of the independent report as well as the detailed thinking of the independent directors about their recommendation.
They have a duty as directors to the best interest of the company. They'll spell out for you why they recommend the offer. in the meantime I refer you to the statement they have made:
In agreeing to recommend the transaction, the independent directors of New Zealand Oil & Gas have taken into account:
- The compelling premium offered to New Zealand Oil & Gas shareholders;
- The changed operating environment for oil and gas investment in New Zealand following the government's decision in April 2018 to not award new offshore exploration acreage;
- The difficulty raising equity capital as a publicly listed oil and gas company on the NZX, especially given the above factors; and
- The significant price decline in New Zealand Oil & Gas shares following the government's announcement in April 2018.
Hope that helps.
I have made my contact details available and if you contact me I will certainly pass on your concerns.
I am more than happy to discuss if you have queries - and a few people have taken me up on that today.
john.pagani@nzog.com
Cheers.
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