Australian (ASX) Stock Market Forum

SGL - Sydney Gas

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I missed AGL being in a trading halt also.

Intriguing......

I just hope that the offer is reasonable. Upon reflection, the AGL/SGL joint venture signed in 2005 was totally unreasonable.

Bill
 
I see there is an eighth page now..:cool:

AGL, having sold its stake in Queensland Gas Company to BG Group for $1.2 billion and its oil and gas interest in Papua New Guinea for $1.1 billion this year is well placed for expansion.

...the spate of coal seam gas transactions – including Arrow Energy’s $551 million bid for Pure Energy this week – says that market prices aren’t much of a guide to takeover values in the sector. Arrow offered about $5.40 a share for Pure when the target’s shares had been trading at less than $1 only about six weeks ago.

http://www.businessspectator.com.au/bs.nsf/Article/AGL-moves-into-position-$pd20081223-ML3LW?OpenDocument&src=sph


$1, $2 How much is it worth?:rolleyes:
 
Jonathan111 said:
I would knock it back if this source is true.:eek:


It is understood AGL will offer Sydney Gas shareholders close to 40c a share
Clancy Yeates
December 23, 2008
http://business.brisbanetimes.com.au/business/agl-set-to-burst-at-the-seams-20081223-749u.html
Click to expand...

The last knockback almost destroyed the company. Maybe the bad taste left by that experience will convince enough holders to sell out at almost ANY offered price above the current SP. Personally, I'm sorely tempted if it IS only a measly 40c, even though that price grossly undervalues the reported GIP resource estimates.

Let's face it - the "SGL" trademark has become so irretrievably tarnished it is probably inevitable it has to be extinguished for eternity, so some significant development of that massive GIP can move ahead.

If SGL do happen to get swallowed up by an AGL cash only offer, I'd likely re-invest the funds in a mix of AJL / AGL shares. I look at it this way - 40c is better than that frightening 15.5c a couple of weeks back!! :eek:

I'm waiting with a badly baited breath ... :)
 
Well guys...42.5 cents....cash on-market....valuing SGL at ~170mill. Underwhelming imo.....an initial low-ball bid supported by SGL/AJL "in the absence of a superior proposal"...
Lowball bid particularly given the strategic nature of the asset & the 25000PJ GIP recently delineated for a portion only of Hunter tenements...
Market action today may indicate if other CSG players/majors will see this as too much a bargain??.
 
So what happens to AJL's options over the further 10% in the event of AGK takeover...
OR if SGL price spikes to above the option trigger level......?
Dont have time to check it out....but surely wouldnt be a bad result for either AJL or BNB if the price went on a run..
 
42.5c it is atm

Course of sales -

11:25:45 AM 0.425 20,000 8,500.00
11:24:53 AM 0.425 100,000 42,500.00
11:24:27 AM 0.425 150,000 63,750.00
11:24:10 AM 0.425 32,916 13,989.30
11:23:36 AM 0.425 4,000 1,700.00
11:23:15 AM 0.425 30,000 12,750.00
11:22:25 AM 0.425 32,000 13,600.00
11:22:19 AM 0.425 40,000 17,000.00
11:22:06 AM 0.425 40,000 17,000.00
11:21:06 AM 0.425 25,000 10,625.00
11:20:24 AM 0.430 4,600 1,978.00
11:20:21 AM 0.425 3,300 1,402.50
11:20:16 AM 0.425 7,790 3,310.75
11:19:50 AM 0.425 88,000 37,400.00
11:19:23 AM 0.425 3,375,000 1,434,375.00
11:18:49 AM 0.425 2,500 1,062.50
11:17:19 AM 0.425 6,500 2,762.50
11:17:03 AM 0.425 50,000 21,250.00
11:16:21 AM 0.430 10,000 4,300.00
11:15:54 AM 0.425 50,000 21,250.00

Apart from that one big trade, not much enthusiasm so far? I'll wait and see what other sharks might be circling.


aj
 
I hold for now, a better offer might come along.
AGL are greedy and opportunistic with their hostile offer..

ATM 20.5 millions shares sold by sell out loosers, another 302 million to go..
 
Guys,

The offer is not hostile. It is opportunistic. The SGL Board has accepted the offer.

How convenient that there are presently no independent directors. How convenient that the chairman is the CEO of AJL. So on and so on.

BNB must be desperate for money. Nice one year return for AJL.

I know it sounds like sour grapes.

Bill
 
Jonathan111 said:
I hold for now, a better offer might come along.
AGL are greedy and opportunistic with their hostile offer..

ATM 20.5 millions shares sold by sell out loosers, another 302 million to go..
Click to expand...

By close of trading "only" approx. 25.5 million shares sold + notification that AGK at open had the holdings that AJL & BNB previously had (79 million shares or 19.8%). So I take it they now have around 105 million shares (or 26%) of SGL's ordinary 402,543,433 shares. This makes them major shareholders as of now, for sure, but they need >90% to effect the full takeover - a long way to go yet.

I wonder what the situation would be for SGL if they can't get to 50%? As majority shareholder and majority board members, wouldn't they have to run the company in the best interests of the remaining shareholders? Would that be a better result?

I'm not sure how a "limbo" result between 50%-90% would pan out either? Any ideas on whether SGL would still be viable?

Sitting tight for now.


aj
 
AGL have picked up 30% of SGL so far. Looks like they are going to pick up at least 3% at the open. Today being the end of the month and the end of the quarter could mean, despite a shortened trading day, plenty of activity.

IMO AGL will be successful with their takeover. Let's face it, AGL already owned 50% of the resource before they launced their bid. I see no chance of a competing bid.

Most of the shares in the "sell" column are at $0.52. Hopefully, this ends up being closer to the final price.

Still holding......nervously.

Bill
 
At the time of this post AGL now own a little over 50% of SGL. The chance of an improved offer seems to be dwindling.

The end is near.............but I'm still holding.

Bill
 
sillybilly said:
Most of the shares in the "sell" column are at $0.52.

Bill
Click to expand...

sillybilly said:
At the time of this post AGL now own a little over 50% of SGL. The chance of an improved offer seems to be dwindling.

The end is near.............but I'm still holding.

Bill
Click to expand...

More than 50% :eek: another disa-ponting sign ... half of the sellers at 52 cents have buckled under the pressure... I wonder what triggered them off.. I am not pleased with their lack of discipline.. :mad:

still holding..
 
Jonathan111 said:
More than 50% :eek: another disa-ponting sign ... half of the sellers at 52 cents have buckled under the pressure... I wonder what triggered them off.. I am not pleased with their lack of discipline.. :mad:

still holding..
Click to expand...

Me 3.

There's something almost perverse about sitting here on my puny 230,000 holding while all these big wimps bail out.

LOL

There is still a long way to go for AGL to achieve 90%. All the eager big sellers must start to tail off soon. If they get to say, 75% and the big sellers dry up, leaving just us little fish, what then? Will they start buying at 43c+?

Hmmm.
 
I think it's just a case of people having had enough of SGL. I've held shares since 1999. I know I've had more than enough but am disappointed with the end result.

There is a big question for all of us. How badly does AGL want to acquire all of the shares? With more than 50% of the shares already safely in the "bank" increasing the offer to $0.52 would cost AGL $20M. Is this too much? I doubt there will be an improved offer this month. The Bidder's statement nor the Target's statement have been lodged yet. On the other hand, the risk is AGL walking away with, for example, 75% at the end of the offer period without increasing their bid.

There haven't been any notices to suggest that the directors have sold. None of them have large parcels. Selling by the directors could be the trigger to force my hand.

Have you guys put your shares in the "sell" column yet? I have not.

Bill
 

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