Troika got .75 a shareWho is floating Severstal Gold? Severstal is still bleeding heavy cash from its steel portfolio, and trying desperately to sell off other assets. So how did they come up with $112.5 million plus the cash for their other misadventure in Crew? Couple this with their staggering debt load, and it makes you wonder how fast Severstal will want to wrap up HRG. Ya I know Severstal Gold is a separate company, but still under the aegis of Severstal.
Those 150 million shares "smell bad" no matter how you look at it. Speaking of which I wonder if folks we know were cashing in/out personally behind the curtain. Would not surprise me, just their style. So what did the folks at Troika do for their double? We got one tenth of what the shares were worth, and then Severstal Gold pays double to buy them back! Enron accounting, or should I say Russian roulette!
We are still waiting for the date of the AGM (I will be there again this year), waiting for news on Royal Gold, guidance for 2010, update on current production. I would say Severstal is up to its old games again.
While I am on the subject of games, who would trust Severstal Gold anyway? What is their motto...Achieve more together".
Just buy me out for $2.00 and I would be happy to forget the whole thing.
The value, in Canadian dollars, of any consideration offered per security if the Offeror acquired ownership of a security in the transaction or occurrence giving rise to the reporting obligation:
C
.75 per Common Share, for total consideration of C$112,500,000 for 150,000,000 Common Shares
CJ