OTCPK:MEAOD - Post by User
Post by
brandy2000on Sep 11, 2017 5:39pm
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Post# 26682055
Benchmark, for MTO via Richmont deal
Benchmark, for MTO via Richmont deal So using the RIC deal and discounting TD's valuation of 1.76x below to 1.50x and est 100 NAV. This due to MTO higher all in costs. Implies approx 150m... The current undervalued share price is a far stretch from this with market cap this afternoon of 80m.... Gives a benchmark that (exJump) synogo can use.
Under the deal terms, all Richmont shares will be exchanged on the basis of 1.385 Alamos common shares for each Richmont common share. The Exchange Ratio implies consideration of C$14.20 per Richmont common share, based on the closing price of Alamos shares on September 8.
This represents a 22% premium to Richmont's closing price and a 32% premium based on both companies' 20-day volume-weighted average prices, both as at September 8 on the TSX.
The agreement to acquire Richmont Mines Inc. (RIC-T) for an implied value of $14.20/ share, comprised of 1.385 Alamos shares. This implies a 1.76x NAV multiple, based on our corporate NAV estimate of $8.07/share.