RE:RE:RE:RE:RE:RE:RE:New QH videoSome on this board keep talking about the $15 billion Fosterville buyout. There never was a $15 billion buyout just a $1 billion or $4.87 per share. It was an all share deal; as for guys like Sprott deferral of tax is the big benefit in a buyout transaction. He then made the big bucks in the appreciation of KL shares. In all likelihood he and CK will want a similiar deal here.
For examle, lets just use a GBR type deal of $30 per share. In that case, assuming a 30 million share holding to make the math simple for you, Sprott will have a capital gain in the neighborhood of $800 million (to simplify math). He is in the 50% personal tax bracket, so he faces a $200 million tax bill (again simplified for math reasons). Now, do I need to explain it any further why I think we will see something similiar here?
In fact, there are 2 or 3 of the top 15 majors which have similiar share structures as did KL at the time of that transaction, and would be ideal candidates here to be a buyer. Even a Newmont will give him indefinite deferral of tax if he so desires, instant liquidity (important in settlinnnng his estate), and pays a 3% dividend linked to the price of gold (if gold goes to $5K as some predict that alone would probably return 6% or more per year indefinitely). This should explain why I see this happening. here is link to th eoriginal KL deal on Fosterville if you do not believe me
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https://www.reuters.com/article/us-newmarket-gold-m-a-kirkland-lake-idUSKCN11Z1OC