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