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Intchains Group Ltd V.ICG


Primary Symbol: ICG

Intchains Group Ltd is a provider of integrated solutions consisting of computing application specific integrated circuit (ASIC) chip products for blockchain applications and a corporate holder of cryptocurrencies based on Ether (ETH). The Company utilizes a fabless business model and specializes in the front-end and back-end of Integrated circuit (IC) design, the two components of the IC product development chain. The Company’s products include computing ASIC chip products consisting of ASIC chips, computing equipment incorporating ASIC chips, ancillary software and hardware, the products are mainly used in the blockchain industry. The Company had built a technology platform named Xihe. The Company has developed hardware models and several systems under the Xihe Platform, including a factory production test system, an after-sales data system, a computing server system and a batch management system.


NDAQ:ICG - Post by User

Comment by goldhunter11on Jan 07, 2017 5:50pm
216 Views
Post# 25679466

RE:ELD’s numbers – CDN high grade ICG beckons?

RE:ELD’s numbers – CDN high grade ICG beckons?SilverW
Your post says: "Eldorado’s News Releases this week must be interpreted as possible shots across the bows of all Integra suitors. If nothing else, these ELD NRs accelerate potential buyout, JV, or merger discussions & conclusions."
Read more at https://www.stockhouse.com/companies/bullboard?symbol=v.icg&postid=25678898#kGs2L7D7f4w14uz2.99

Let's say it was a shot across the bow. Not sure if the incoming CEO, Mr. Burns (former G's COO), had his finger on the trigger. May be not yet, since the formal transfer of jobs won't take place until April when they hold the AGM, as I understand it. But, the canon went "boom" and G and the rest of the bigger fish such as ABX, AEM, etc...were awaken from their afternoon snoozing and start looking around.

So, ELD got their attention, especially the juicy ~ $1B (USD?) cash in its treasury from the sales of its China's holdings is daggling in front of their face (as in a dragon dance). G may just try a "friendly" merger with ELD to get the cash (and the 14% of ICG). They would do the medium size fish (ELD) first and sort out ICG (the little fish) a few months later?

The math (Cdn $):  If G offerred $ 4.5B, or $4.5 B/716 Ms = $6.3/s (6.3/4.5 = 1.4, or 40% premium). Presumably, G would pay by shares, e.g. with a conversion of 19.3/6.3 = 3.06 (or 3.06 ELD shares for 1 G share). That would amount to  716Ms/3.06 = 234M of G shares. Dilution @ 234M/1068M = 22%.The prize?
- ELD holdings with current and future (low cost) production around the world (a bit of a gamble on Greece and Turkey)
- approx $1B in cash
- 14% of ICG

Timing: G may want to wait until April for its insider to settle in the CEO job and warming the seat at the BoD, then strike? (or, initial discussions have been taking place on the big picture?).

As indicated, ICG would be sorted out a bit later... no hurry. But who knows, may be G would do it at about the same time.
All speculations of course.
GH


 
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