Q: Please update the current situation of Chord's take over of Erf. When is the expected closing date? What is the take over value for Erf.Please show u calculation. Are there others interested eg Devon?Your last advice was to hod,what is u advice now?Note that price of Erf and Chord have risen since announcement around Feb 22.Of course Wti price have risen quite nicely since then. Txs for u usual great advices & services
5i Research Answer:
Closing date is expected June 30 but we would take this as fluid. The value is US$1.84 cash and 0.1013 CHRD shares. CHRD shares are worth $172.17 so the value is 0.1013 x $172.17 = $17.44, plus $1.84, for total $19.28 US$. At current ERF prices there is a bit less than 2% in value to go from the market price, depending on the exchange rate used. DVN stated earlier interest but not other parties are declared. We would still hold. The sector strength has helped create some additional value here.