Afternoon Report Monday 2 June 2014
Following up from to last week’s note - “Could Origin Energy (ORG) become the next Telstra (TLS)?”
ORG today entered into an agreement with Karoon Gas (KAR) to purchase Karoon's Australian assets for US$800m.
We would rather leave ORG alone now due to the following:
We cannot comprehend why the company is raising equity after its financial results in August when it is currently trading near 52 week highs.
Speculation a potential cost increase at APLNG is noted as the raising of A$1bn is higher than the US$600m purchase price of the asset + US$200m of cash deferred payments.
The ASX200 closed +26 points higher as we see the usual asset allocation on the first trading day of the month.
Show more...
You need to be a member to view this article
REGISTER FOR FREE INSTANT ACCESS
Already a member? Login Here
