I got this from Sapinda.com the website of the owner of Sequa. What I find very interesting is the last sentence. A lot of posters have been putting the total funds for the project at 300m out of which pvr would get some and rest be used to develop Barryroe. But the 300m is only the debt portion of the investment. There could be another 700m of equity to go along with it for all we know
Sequa Petroleum agreed to issue an up to $300M Convertible Bond due 2020 Sequa Petroleum N.V. (SPNV) has engaged Anoa Capital S.A. for the issuance of senior, unsecured convertible bonds due 2020. The company will determine the launch of the convertible subject to Government approvals. The transaction is expected to close on or before 30th January 2015. The proceeds of the convertible bond transaction will fund the debt portion of the financing for SPNV’s identified acquisitions pipeline. The equity portion associated with those acquisitions will be funded from alternative sources
With that been the case they are in a better negotiating position then Jimmy puts them. I have done my figures on this. DYOR and come back to me if I am wrong please
In the event of no deal happening the board can pay the loan back and sit on the oil field for another two years fairly easily. They would loose their share of Spanish point deal but so be it.
PVR has the rights to a potential multi billion dollar oil field. They have waited for a good deal. I think you are over reading small volume affecting to sp. In so far as the sp going up before a deal. They kept the indian deal very secret so I would expect the same again. In fact the only reason we know about this deal is not the papers but one of our own doing his research.
Haha Jimmy is not happy! If a deal is announced he will probably loose his shirt on short selling pvr