ARROW Energy’s proposed offshoot Dart Energy is on track to start trading on July 20 priced somewhere between $0.60 and $1.60, according to chief financial officer Graham Yerbury (pictured).
Dart Energy would consist of 90 per cent of Arrow International, as well as farm-in rights to Apollo Gas’ New South Wales tenements and shares listed in Australian companies.
Ambiguous perhaps, but Yerbury says he’d be a ‘bandit’ to predict the actual price of a Dart share.
“Given the one for two Arrow shares set-up, it’s looking like it will be between 60 cents and some forecasts are going all the way up to $1.60,” he says.
“With continued volatility in the stock market it’s really hard to predict, but the issue is how many people who own shares in Arrow will want shares in Dart?
“What we’ll probably see is people looking who actually want shares in Dart, but the hedge funds have been more pressed on the Shell acquisition than the demerger.”
Dart will start trading on a deferred settlement basis, while Yerbury says the company will also likely issue a share placement worth between $20 million and $30 million to raise capital.
Dart Energy CEO Simon Potter says the company will be different to other new listings because it is a well-established company with a low-cost business model and resources, holding six offices and employing 80 staff.
“In our portfolio we’ve got opportunities for scale - we’re starting out at the same size that Arrow was in 2007. The company will have the assets, resources and systems that you would expect with a company of that size,” he says.
Arrow Energy CEO Shaun Scott says that regardless of how shareholders vote on the acquisition deal, if they vote for the demerger agreement then Dart will still list as a separate entity.
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