RE:Seems like the deal wouldn't go without amendment@staz-I am a longtime RMC shareholder and understand your initial reaction to the manner in which this deal played out. Let me address a couple of points. First, as to your assertion that the deal hardly went through, even with the amendment, you are correct in what you say but forget the timing we RMC shareholders were under. I woke up early yesterday morning and saw the news. I voted "No" to the deal as originally designed for reasons stated in other posts. I was pleasantly surprised by the amendment and had to scramble to change my vote. Remember, you could not change your vote online at that point so it took some work. If I did not have the advantage of being several hours ahead of Vancouver time, I may not have been able to do so and I am sure that many others were unable to do so. If all RMC holders had been given adequate time, the vote surely would have been higher in favor of the deal.
I also understand the grousing about the deal and the sweetener to RMC. NSU has done a great job with Bisha. As I said in previous posts, Bisha (NSU's sole asset) is a very nice house in a very bad neighborhood. What do you pay for an asset like that? Not as much as that same house in a nicer neighborhood. That is the reality and that is very likely the reason that NSU's share price has been rangebound for several years. It will simply not trade at a multiple afforded to the nice house/nice neighborhood asset. NSU management even went so far as to implement a generous dividend policy to support the stock, largely to no avail from a multiple expansion standpoint.
So what did NSU accomplish with the RMC deal? First, it acquired one of the most promising lots in a much better neighborhood than Bisha. It will take time and money to build the house, but overall it upgrades NSU's desirability and they bought the lot well below its value. They diversified and for that, shareholders should be thankful. Second, they also got a number of other lots (nee projects, like RIO JV right next door) that may well turn into something even better than Timok. Time will tell. What did this cost NSU? One-third of the company going forward and some cash. A minority position for RMC shareholders and cash that was earning nothing. NSU's ROIC going forward will improve dramatically. I am pretty familiar with RMC and its properties and my prediction is that when you look back 3-4 years from now, this deal will look like an absolute steal.
BTW, I do not plan on dumping my newly acquired NSU shares.