Post by
PIB04 on Dec 05, 2005 9:25am
Can We Value It?
From the NR:
Based on the 10-day weighted average trading price for both companies' common shares on the Toronto Stock Exchange, the transaction values each Virginia share at Cdn.$9.87 plus the value of each 0.50 of a New Virginia share estimated to be Cdn.$1.23 based on the fair market value of the assets and cash. Total consideration received by Virginia shareholders represents a premium of approximately 43% based on the above mentioned 10-day period.
I read the above to mean that, at the moment, this moves the value of VIA shares to $11.10. This would, of course, change if Goldcorp takes a pop above its 10-day weighted average.
OR, is the "0.50 of a New Virginia share" worth 0.5 X $1.23 or $0.615? In this case the value of the VIA share would be moved to $10.485.
Which of the above calculations apply or are both way off base? I, too, am new to this circumstance so am trying to get a handle on what we can expect.
In any event, neither Goldcorp nor the other Virginia assets are going anywhere so I don't see this a creating a "sell on news" scenario.
Again, your informed thoughts would be appreciated.
PIB