GREY:ELGMF - Post by User
Comment by
professon Jul 16, 2014 4:43am
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Post# 22749541
RE:RE:Elgin moving higher on strength of Mandalay stock
RE:RE:Elgin moving higher on strength of Mandalay stockpecorina the arrangement agreement proposes that Mandalay will acquire all of the outstanding common shares of Elgin for consideration consisting of C$0.37 cash or 0.4111 of a Mandalay common share per Elgin common share, subject to pro ration. The share exchange ratio therefore equates to 1 / .4111 or 2.4325 Elgin shares for 1 Mandalay share. OK - I admit I didn't factor in the extra .0111, so sue me. As well that is subject to pro ration so shareholders will be restricted on the number of shares they can exchange for MND stock. The rest will be bought at 37 cents.
Im not saying this is a great deal, but it's something that keeps existing Elgin shareholders in the game under a more capable and hopefully trust-worthy mgmt of Mandalay.