HERE'S THE ADMISSION AND THEN THE LIE...From NSU's press release:
"This premium transaction is an excellent outcome for our shareholders, and the result of a rigorous and competitive global process to generate maximum value for Nevsun's outstanding assets," said Ian Pearce, Chair of Nevsun's Board of Directors. "The all-cash consideration of C$6.00 per share better reflects the fundamental value of Nevsun's mining and development assets, while also providing an appropriate change of control premium to our shareholders."
I'll break it down:
Here's the admission:
"The all-cash consideration of C$6.00 per share better reflects the fundamental value of Nevsun's mining and development assets."...
YES, IT BETTER REFLECTS BUT STILL DOES NOT REFLECT THE TRUE UNDERLYING VALUE OF ALL OF NEVSUN'S MINING ASSETS. IT DOES NOT FULLY REFLECT. NOT EVEN CLOSE. NICE WORDING.
Here's the lie:
..."while also providing an appropriate change of control premium to our shareholders."
AGAIN THIS IS PREMIUM OVER PREVIOUS BID FROM LUNDIN AND/OR PRICE OFFERED, NOTHING TO DO WITH UNDERLYING NAV. CAD $6 REPRESENTS AN ARGUABLY HUGE DISCOUNT TO NAV. WHAT PREMIUM? WE ARE GETTING NO PREMIUM.
I HAVE ARGUED THE CAD $8 AS A BARE MINIMUM. A PREMIUM WOULD BE MORE ON THE ORDER OF $8.50 OR MORE AND STILL DOES NOT SPEAK TO THE POTENTIAL MONSTER OF VALUE WITHIN THE LOWER ZONE.
THEY ARE ATTEMPTING TO STEAL OUR WORTH / VALUE FROM SHAREHOLDERS.
If the market is not willing to pay fairly for NSU's assets then all the more reason for NSU not to agree to any offer that does not really reflect our value that we would ultimately realize on our own.
Zijin bought the BOR assets...that has arguably complicated / impacted things. That's a conflict in my opinion. If NSU were to say no to Zijin, then would there be potential consequences?