HIG 0.00% 10.5¢ highlands pacific limited

Two ways of reading that oc82 Will GRAM work with HIG in the...

  1. niu
    1,635 Posts.
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    Two ways of reading that oc82

    Will GRAM work with HIG in the very supportive way that PNA worked with HIG?
    I expect that, for a while at least, there will be continuity of faces at the operational level and so nothing very much should change there. For HIG the Freida transaction was something of a sweetheart deal with old mates - I feel it is unlikely we would see such easy dealing again at the board room level.

    Will GRAM manage HIG the way they managed PNA?
    Their ability to influence HIG may be a little different to their ability to influence PNA.

    In PNA they held 23% and a seat on the board.

    Assuming they take full control of PNA (which is looking to be all but a done deal), their holding in HIG will be 14%, placing them ahead of PNGSDP on 11.2% and behind Trafigura at 16.03%. The HIG board is fully independent at this point. In that sense, their influence and control is minimal.

    I figure their influence will be more likely felt across the table at the JV board meetings where they will hold most of the cards. If GRAM's interest in HIG grows stronger there is some potential for tactical games to be played here (think timing, funding,etc). I hope the relationship will be a supportive one to everyone's mutual benefit.
 
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