GREY:PGDIF - Post by User
Post by
Oregonduckon Jul 22, 2018 5:50pm
248 Views
Post# 28350723
No bidding War
No bidding War
Mr. Market says no bidding war expected. The last stock price trading at cash price of $0.24 says there is no White Knight waiting in the wing. It is generally accepted that a stock will sell above the takeover price should there be other bidders. Also, this is a non-hostile takeover with full support from Management based on a pre-bid lockup agreement negotiated. Minority shareholders challenging under the CBCA, s 241(2) - Oppression Remedy - will likely not be successful since the 50% premium to market appears reasonable based on takeover case law in Canada...No one except speculatively maybe Rio Tinto which controlled the nearby Diavik Mine may consider upping the takeover bid... It is noted that, based on NI43-101, the Chidliak mine's After-tax Net Present Value (NPV) will only be $668 million for the life-of-the-mine, and the capital costs will amount to $520 million for building out the infrastructure and the processing plant. No doubt, it is hugely disappointing for minority shareholders, but Eric & Robert will get their pound of flesh for some $42 million from this deal, or as they say provide liquidity to get the hell out...50% premium is nothing for long-suffering PGD shareholders. Some penny diamond stocks can make 50% in one day, and shareholders realizing 4 or 5 baggers on exploration because of their low price.