GlobeStar Announces Proposed Cdn.$1.65 Per Share Cash Offer by Perilya
Wed Oct 6, 7:55 PM
TORONTO, ONTARIO--(Marketwire - Oct. 6, 2010) - GlobeStar Mining Corporation ("GlobeStar") (TSX:
GMI.TO) today announced that it has entered into a binding agreement (the "Letter Agreement") with Perilya Limited ("Perilya"), pursuant to which Perilya has agreed, subject to the satisfaction of certain terms and conditions of the Letter Agreement, to enter into a further definitive support agreement and make an offer to acquire all of the outstanding common shares of GlobeStar by way of a take-over bid (the "Offer") for CDN$1.65 per common share in cash. The Offer represents a 29.9% premium to the closing market price on the Toronto Stock Exchange (the "TSX") of GlobeStar common shares on October 6, 2010 and a premium of 36.5% to the 20-day volume weighted average price of GlobeStar common shares on the TSX.
GlobeStar's board of directors, after consulting with its financial and legal advisors, has unanimously determined that the Offer is fair, from a financial point of view, to the holders of GlobeStar common shares and is in the best interests of GlobeStar and, subject to the entering into of a support agreement, will recommend acceptance of the Offer by such holders. GMP Securities L.P., the financial advisor to GlobeStar's board of directors, has provided an opinion that the consideration to be received by the holders of GlobeStar common shares pursuant to the Offer is fair, from a financial point of view, to the shareholders of GlobeStar.
Commenting, GlobeStar's Chief Executive Officer, David Brace, said: "We are pleased with Perilya's offer to acquire GlobeStar, as it demonstrates our commitment to maximizing shareholder value while considering the best interests of GlobeStar."
Full article:
http://ca.news.finance.yahoo.com/s/06102010/28/link-f-ccnmatthews-globestar-announces-proposed-cdn-1-65-share-cash.html
PS. What a steal, at least it is about 0.50 higher than my buy price.
Cheers,
Dave.