Post by
Malpeque2 on Aug 07, 2022 8:15am
Not short. Not long. Not a former disgruntled anything.
You don't believe me. I check EVERY cash merger/arb buyout deal in North America. Every one gets at least a check of the "discount". The larger the discount they more research I do to see what are the reasons for the discount and what are the chances of it actually closing.
HSR/FTC/DOJ can be a problem in America. CFIUS usually is not..... Except we have near ZERO public info on the buyer Viston and Roach, and it has been this way from Day 1.
Money for the cash offer can sometimes be an issue. Most times a Tender offer the buyer is MUCH larger and has the cash on the balance sheet or can be financed from their existing credit lines. It's usually a much larger corp buying a smaller one to do a tender. Tender's are quick too...........usually. You do not tender unless you see a quick close. For PQE there was a tender last April from some German entity that was hard to figure who they were. It lacked transparency. On the german exchange. They tendered at a lower price and got very few shares, even though that price was much higher than the stock price at that time. It did not close. I figured it looked suspicious why tender for a company in Germany who is domiciled in Canada, has assets in US, and trades primary exchange TSX-V and OTC. And trading has been halted?
The reason to tender is to hoover up the few shares that are actually owned in Germany by German investors, at lower than the tender price, where it did trade, and then be able to dump those shares on YOU when the main event came along later in 2021. It was an attention getting strategy for the shares in Europe.
Anyway, I have put a lot of hours into researching this deal because the discount was and is so large, becasue of the large potential fro profit. I think you are not going to close and the shares will be under 10 cents again someday soon. GLTA, and an interesting one for sure!