RE:Benefits of takeover Hello Effectemergence,
I agree with your summary of thepositive economic benefits that will accrue within Canada as a consequence of SD Gold taking over TMAC by buying out the existing shareholders at $1.75. If this was a proposal by any other non-Chinese company, it would be a no brainer for the folks at the Investment Review Board.
While other commentators have attempted to come up with "national security" issues in an attempt to introduce an alternative objection, I do not see any legally defensible arguments to turn down the SD Gold proposal. Gold cannot be considered a "strategic" mineral, and it is currently in the ground in Canada. SD Gold will have to invest and spend significant dollars in the north in order to extract and benefit from the sale of the gold, paying royalties and taxes along the way.
I believe it was quite clear that SD Gold would have happily matched any competitive offer that any other investor might have launched, as the terms of their proposal allows then to do. Given that assessment, no other bidder was going to step forward and incure the significant expense of making an acceptable offer, only to be outbid by a matching bid from SD Gold. No question SD Gold will have scored a significant financial win to be able to acquire TMAC Resources at $1.75 per share when they were looking to pay $2 to $3 per share pre-covid 19.
Investors with ACB well in excess of $1.75, and there are a lot of them, will be forced to sell their shares at a loss. Those with cash in hand today can still by shares at $1.50, offering the potential of a 16.7% return over a couple of months to closing of this takeover.
My bet is that the deal will be consumated in the next 6 weeks and money will change hands by the end of September.
Good luck to all.