12-11-2013, 03:37 PM
Let's be clear, all of the numbers that IOC quotes, the $613, $1.5B, $3.4B ... assume that they own or control the IPI stake. According to the PR the deal cannot go forward until the minority interests have been bought out. Hession stated there are only two parties IOC and TOT.
Tree states: "They (IPI) have been negotiated with by IOC and their collective interest could be re-sold as the 19.3% interest which TOT plans to peddle to a strategic partner for development."
First, does "have been negotiated with" mean that IOC has purchased them?
Second, 19.3% is misleading. The only time they would own 19% is pre TOT but post PNG - So I don't think you should necessarily relate TOT's statement of 19.3% and IPI ownership.
I took TOT's statement that they and IOC could farm out an additional 19.3% as just that, post deal they could sell 19.3% on a pro rata basis presumably at a much higher price than what TOT paid. This would help TOT recoup what they paid IOC up front and of course help IOC recoup what they paid to IPI.
Tree also said: "Some are of opinion that the base line deal between IOC/TOT for IPI stake is shrewd and some IPI partners feel they can market that block to a qualified strategic at a higher price, thus, they keep the spread."
I think this means some IPI think they can get a better price than IOC is offering. They appear to have some leverage, since the deal can't go through unless they are on board. IOC may have to cut them in on any subsequent profits on resale.
Tree states: "They (IPI) have been negotiated with by IOC and their collective interest could be re-sold as the 19.3% interest which TOT plans to peddle to a strategic partner for development."
First, does "have been negotiated with" mean that IOC has purchased them?
Second, 19.3% is misleading. The only time they would own 19% is pre TOT but post PNG - So I don't think you should necessarily relate TOT's statement of 19.3% and IPI ownership.
I took TOT's statement that they and IOC could farm out an additional 19.3% as just that, post deal they could sell 19.3% on a pro rata basis presumably at a much higher price than what TOT paid. This would help TOT recoup what they paid IOC up front and of course help IOC recoup what they paid to IPI.
Tree also said: "Some are of opinion that the base line deal between IOC/TOT for IPI stake is shrewd and some IPI partners feel they can market that block to a qualified strategic at a higher price, thus, they keep the spread."
I think this means some IPI think they can get a better price than IOC is offering. They appear to have some leverage, since the deal can't go through unless they are on board. IOC may have to cut them in on any subsequent profits on resale.