Peregrine Diamonds Ltd. PGDIF

Friedland share price

[ChiliWillie]

Does anyone have enough info to figure the average share price paid by the brothers. My suspicion is that this is not a win for them. Can they make a private bid under the current circumstances?

[shneps]

I think we calculated somewhere between. 17c and .20c.

[robybob]

Chillie, they participated in all the dime rights, as well as the 20 cent rights.  my thinking is they are about at break even, this is not a win for them, not even close. my guess is they could not get anyone to partner and this was the best choice they had to get their money out otherwise they would have had to pony up some big cash to get it through a FS, and dilute it even more Rhino,

[shneps]

Anybody consider Desmond stepping in (outside of the MPVD entity). Amalgamation at a future time would not be out of the question. Haven't looked into Agnico's cash position but diamonds have still a shine, even with past disappoints. It's a cheap sale. I think there may possibly be others. PGD left the door open.

[mill44]

Shneps, if this is the final price, then junior diamond mining is dead. It means that there is no interest, and with that no money left to explore. Everyone here was convinced that a lowball offer has no chance with the Friedlands. I guess we where all wrong. This one is for you Kodiboy.

[shneps]

I agree Mill. If DeBeers is able to pull this off I will never consider an investment in diamonds going forward. Pretty sad in the grand picture of things.

[ChiliWillie]

I was really wondering about their motivation for accepting a low ball price unless they were considering privatizing the company by buying the other half at a price somewhat higher than Debeers. Debeers being used only to provide a market valuation for the existing shareholders. Their offer being a gun to existing shareholders heads. I dont know about the legality.

[mill44]

Willie, hats off to you. People called my ideas paranoic, but even I did not think of this as a way to cheaply privatize the company. But you are completely right. Get the sharholders to vote on the offer, get the 2/3 majority and anything higher would be accepted. It's a nice idea, as long as DeBeers does not counter. Although they might know by now how high DeBeers would go, so that much

[mill44]

One other thing to add is the shareholder structure. If Robert brings up privatization, his shares cannot be counted to push it through. Eric being related to him might bring up issues with his shares in that case. This way they can vote.

[ekim]

I think the only spin on privatization that i can think of would be for Sprott to come into the market with a bid above De Beers. If he wins, puts those shares in a holding account. Friedland's deposit their shares in that account and then after all is said and done...the Friedland's privately buy back those shares from Sprott and no money transfers from friedlands to Sprott.  Sprott

[mill44]

So what happens if the shareholders approve the deal and some other entity comes in with a better offer? So what if that entity is representing the Friedlands? It complicates things that they have no control over DeBeers, but it's not impossible. If anything, I believe that it is more plausible that they could not get anyone to make an offer that would be acceptable to them and got tired of

[mill44]

The information needed is on Sedar and news releases if anyone wants to get the exact price. I don't remember if it was before the 10c rights or the last 10c rights, but I did a calculation and Robert was around 30c/sh. They did not make a lot on this, that's almost sure. Definitely not what their fame would have suggested. According to this Rhino person most companies get 40-100% of the