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GMP Capital Inc. Cumulative Floating Rate Preferre T.GMP.PR.C



TSX:GMP.PR.C - Post by User

Post by SamRothsteinon Feb 26, 2020 2:16pm
218 Views
Post# 30736700

Deal announced

Deal announced I was hoping the deal terms would be around 1.80 to 1.85 shares of GMP for each share of RGMP.  Instead they are giving 2 full shares.    Using the RBC valuation and share exhange prices GMP is worth $2.57 a share, so $193,865,380.  And RGMP at $5.15 a share (they used $5.14 in exhange) is worth $425,000,000.  So RGMP and GMP combined worth $623,865,380.  Which is also around what TD almost bought RGMP for.  After issuing almost 111 million shares of GMP the new amount of shares will be 186,428,000.  At current price of $1.61 that gives market cap of $300,149,080.   So good chance the SP will move up to get close to that intrinsic value of $623,865,380.  To equal that, the share price would be $3.35, so I think there is good chance it  gets above $2 once deal is ratified.    
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