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POS 5.6¢

Deal time?

  1. UtahSaints

    421 Posts.

    As i have raised before, they have to be talking to other Companies for a merger of some sorts - they cannot do this on their own - they simply do not either a) the cash required or b) the time....there is no way they are going to go back to the market (general or sophisticated) for fresh capital and dilute the shareholding base into oblivion....I cant imagine AF will stump up again (unless of course the deal is overwhelmingly favorable to him)....so, a Corporate deal (facilitated via AF) has to be the answer....how do you reckon BHP is thinking about all this?!! The offtake is good leverage for deal conversations....can you imagine how the debt financier discussions will go if POS does not deliver on the offtake agreement and BHP walked away.....POS must come up with an elegant Corporate solution and quickly - one that, critically, results in DS "conveniently" stepping aside...wow, talk about squandering an opportunity...the debt financing is the key and with current situation cannot be completed - i would expect there would be a number of standard conditions precedent including regulatory approvals, capital structure, offtake agreement(s) etc...all taking much too long....if they try to go alone, the sp will just retreat, cash reserves diminish and lube sales further increase....

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