Friday, January 20, 2006

QGC takeover offer of SGL

Primer on my investment outlook

Queensland Gas announces a takeover offer for Sydney Gas at a ratio of 1 share QGC for 2 shares SGL. SGL shares may go upto 36c as QGC is trading at 72c. However, the offer includes FULL repayment of convertible notes.. I've held them for 3 interest payments - about a 9% return on a 60c FV (approx 5.4c) + my price is about 53c each. Thats a good gain when they get redeemed..
However, the game is on! I do think some other suitors may emerge for SGL's assets.


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