They should read about their new investors..
First there was an $88M loan facility from their house bank, Standard Chartered.
Then a placement of 173M shares with some of the sharpest minds in the business. It got into the press already (see below), and the stock price is up 10% so far (halfway through the Aussie trading day).
Orchid Fund to Control 14.9% EWC
Monday, 11 July 2011 06:25
Theindonesiatoday.com – Orchid Fund Pte Ltd, a company controlled by Richard Chandler Corporation, will become a 14.9% shareholder in Energy World Corporation Ltd, a company which controls some energy assets in South Sulawesi, Indonesia.
Orchid Fund gets the ownership through the purchase of 173 million new shares placed out by EWC at A$0.5 per share and 85 million shares sold by Energy World International (EWI) Ltd, a company controlled by EWC chairman Steward Elliot.
CLSA Limited is the placement agent for both the new shares and EWI divestment shares.
The gross proceeds totalling AUD 86.5 million raised by EWC in respect of the issue of new shares will be utilized to fund EWC’s investments in its ongoing projects, gas developments and its Modular LNG projects in Sengkang Indonesia.
“This ensures EWC can continue development funding to these projects. EWC also expects to raise project debt finance in respect of these transactions at an appropriate time. Following the sale by EWI of 85 million shares, EWI will hold 634,572,393 shares in EWC or 36.59% of the issued share capital of EWC (on a fully diluted basis) and will remain a controlling shareholder,” EWC told ASX this morning.
EWC controls Sengkang PSC in South Sulawesi, which feeds the Sengkang gas-fired power plant (being expanded) and the proposed LNG Project. (Theindonesiatoday.com)
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In case you’re not familiar with the Chandler brothers, the people behind the Orchid Funds: