Don't forget the debt $190m..28 Oct 2014 19:41
The debt is also shared by all parties in the 'proposed transaction' but MCL will have to work the debt off as it will be assigned to MCL & not part of the oil & gas side of the business, as they have paid MCL $31m for this..that is why the Hanks deal is better for MPLE than the 'proposed transaction' as it it mentions in the businesswire report..
'Maple Resources Corporation of Dallas, Texas Announces Its Binding Offer to Purchase the Oil & Gas Assets of Maple Energy plc in Peru for US$47.4 Million 100% Cash with No Dilution to Existing Shareholders'
As for Blackrock their average here is very high, they have been involved a long time, yes they have bought at a lot lower levels recently, to bring their average down but these type of funds are in for the long haul, not just for a few months to realise a quick profit. There are Peruvian pension funds involved too, at very high averages & they will be taking a long term view in this project as well.
The 'proposed transaction' will add value to MPLE of that there is no doubt as it is a rescue package, backed by big players who see value in the ethanol project & have deep pockets. This will satisfy the senior lenders but don't be misguided by the 'proposed transaction' RNS, read it again & do the maths. MPLE will own less than one quarter of the ethanol business if concluded, 24.1% is the quoted figure which we know.
The underlying value here is the future price of ethanol & the fact it is a sustainable & renewable resource as energy issue's become more apparent throughout the world as oil becomes more scarce, difficult to find & increasingly expensive to get out of the ground..
Sign In
Follow the stocks
