RE:RE:Sum of the Parts...
theCurse wrote:
MM,
I am actually a bit worried as this is the first acquisition/merger by EDV (and there has been a LOT over the years) that the smaller component does not have retail investors on the bullboard up in arms yelling that the deal sucks, they are being ripped off, ratio should be higher, etc. This included myself when EDV took over Etruscan (post credit crisis firesale) as their first gold holding.
hope it says more about the savvy folks on this BB than the deal negotiated by EDV!!! :)
still, i figure EDV is off at least $3-5 compared to if this deal had not taken place but that seems to be how it goes...not sure why such a penalty in the short term....assuming the deal makes sense.
The last deal, for semafo, had semafo trading at a slight discount to EDV throughout the confirmation process (dead period imo) - my guess was because of the slight chance it would not close (by the corps and also by the regulatory bodies).
tC
I always found the posters over here to be quite savvy ( with a couple of notable exceptions . Lol)
gone are the days of high premium takeovers ( unless a elephant acquires a mouse - which happens)
im not worried about the lack of a premium and wouldn't be if I was a Teranga shareholder ( which I am as well)
my instruction/ education on this was The merger of Equinox and Leagold in SA. The value creation for both was incredible and fast.
bigger is better when there is good mgt teams and not too much ego.
imo EDV will correct in price ( upwards) as the market absorbs the deal. It will take TGZ along with it for the ride. As always the big catalyst will be the PoG which is taking a breather until the money printing show in the US gets ramped up again to support a Covid recovery, prevent an economic collapse and rollout vaccines for all.
my feeling was EDV was underpriced prior to the deal whereas TGZ was fairly priced. So good for TGZ as well.