STG and Energy One – A Deal in the Offing?

According to a disclosure on ASX, Energy One Ltd. has received a “confidential, indicative, incomplete, conditional and non-binding proposal from global investment firm STG” – owner of Quor. According to the announcement, STG proposes to buy all of the shares in Energy One Ltd at an indicative price of $5.85AUS in cash and Energy One has entered into an expedited period of exclusivity to allow STG to complete due diligence. STG has made it quite well known that it intended to build on its acquisition of the Brady Commodities (Quor) assets and that it was looking at the market for potential acquisitions. However, the move for Energy One is perhaps just a little surprising in that Energy One is a power and gas markets player in Europe and Australasia whereas Quor is currently offers metals and commodities CTRM solutions. Neither entity has significant north American operations. The surprise is that STG isn’t trying to build on its beachhead in metals and commodities gained with the acquisition of Quor (which in turn inherited Brady’s metals market presence), but rather is expanding its footprint across broader commodities markets instead. Additionally, it looks like that puts it in direct competition with the other… continue reading

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