Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

High River Gold Mines Ltd HRIVF



GREY:HRIVF - Post by User

Comment by discern1on Jul 23, 2012 10:32am
274 Views
Post# 20141991

RE: RE: RE: Nord locks up more shares

RE: RE: RE: Nord locks up more shares

From what Cjell posted, lock up agreements have to be treated like everyone else.  We will never know however if a fund or person receives a special kickback without some major investigation.

 

My assumption is that all shares who have agreed to this deal have accepted the swap for Nordgold shares.  Please recognize that I am not in favour of this deal, however, at one point we were talking about a  6-8 exchange rate range according to press releases back in February.

That original proposal is a far cry from the 3.5 ratio of this proposal.  As a result, I could see some larger international investors seeing more value in the swap than in the cash buyout.

Locking in is also a smart move for an institution who wants to continue a relationship with Nordgold for two reasons: #1  they demonstrate support to management and Mordashov and #2  they are still going to be treated along with the other minority share holders.  If the offer increases because of share holder reluctance to sell, their offer increases too.

I still believe that High River Gold is still worth far more.

 

According to estimates from Valentina Bogomolova "Uralsib", based on different scenarios for assessment of Nord Gold and High River Gold for the transaction, the exchange rate can be offered in the range of 6-8 shares of High River Gold per share Nord GoldThus, in her words, minorities HRG can get 8-9% of shares in Nord Gold. According to the calculations of Peter and Paul Oleg BCS - 8.7%, and the new free float will amount to 19.3%. Offered additionally a further 6%, the company can expect to receive a premium listing, as was recently done and Evraz "Polymetal".

<< Previous
Bullboard Posts
Next >>