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

PMI GOLD CORPORATION PMVGF



GREY:PMVGF - Post by User

Comment by gold_diggers1on Dec 31, 2013 10:17am
493 Views
Post# 22048219

RE:RE:RE:Do we get to vote on this merger ??

RE:RE:RE:Do we get to vote on this merger ??Hey 00Bill, but why do you think AKG shares is now worth only $1.70 whereas it was holding strong at $2.10 before the announcement?
.
It's all because AKG is spending more (in terms of AKG shares) to acquire PMV's $100mil cash...., it was valuing PMV $183mil for its $100mil cash.....see link below.... Current market does not care about the gold in the ground anymore. As I said, after the merger, the two companies combined will have roughly $280mil in cash with 180mil shares O/S..... that is $1.55/share in cash. Hence it is trading at $1.70.... PMV share which is worth 0.201 share of AKG is now trading at $1.70 * 0.201 = $0.34 which is correct.
.
With the arrangement of the merger - a share exchange, NOT a buyout, you cannot hold onto the $0.46 assumption anymore, PMV will be traded very closely with AKG sp by that factor of 0.201.
.
This deal is just like the BTO - VTR deal.... If you did not like it at the time, you should have sold PMV at $0.46 at the time (like I did with my VTR shares at $0.41 which subsequently dropped to low $0.30s). BTO bought out VTR with a share exchange ratio of 0.15.... when the deal was announced, BTO traded at $2.80.... hence VTR jumped from $0.23 to $0.42 (=$2.80 * 0.15)..... Then BTO trending lower to $2.20..... VTR followed suit to trade at low $0.30s and now the deal is done.... VTR delisted.
.
.
.
Analysts at Scotia Capital are backing Asanko Gold Inc.’s (TSX: T.AKG, Stock Forum) $183 million deal to acquire PMI Gold Inc. (TSX: T.PMI, Stock Forum), saying the combination makes sense given synergies that arise from the companies’ assets in Ghana, West Africa.
Read more at https://www.stockhouse.com/news/natural-resources/2013/12/19/asanko-t-akg-sought-macquarie-s-backing-prior-to-pmi-gold-t-pmi-deal#FD4olxd6GHe1HKlo.99

<< Previous
Bullboard Posts
Next >>