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Linc Energy Limited
LNC Makes its Move – Expands Australian Presence through SXP Merger
LNC A$4.10
BUY
12 June 2008 26 May 2000 Jeremy Tobias
(02) 9226 0086
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Linc Energy Limited (LNC) today announced a proposed merger, to be conducted through a scheme of arrangement, with South Australian based Sapex Limited (SXP). BBY views the proposed merger positively as it will allow LNC to cement its presence as the leader in Underground Coal Gasification (UCG) and Gas to Liquids (GTL) by taking a position in a strategic location. We expect LNC to pursue a number of other deals in respect to stranded coal assets suitable for UCG, both domestically and internationally over the coming year. Our DCF valuation is A$5.50/sh, in line with our 12 month share price target, after rolling over our financial model to the FY09 year.
SXP Merger Terms