RE:on the other handWeird deal, I am curious to know how much visibility/access DNN has to the JCU board to know if this would be accepted.
Taking Roger somewhat at his word, he sounded very confident in the Crux interview, believe he threw out if someone offers a trillion dollars they might look, but they are confident this will go through final shareholder approval.
Everyone is talking about how DML offer is a no brainer at 4x premium, does anybody even know anything about OURD and their priorities and what they care about. I couldn't find a website with their shareholder listing, but Roger mentioned 29 major Japanese companies including Mitsuibishi - do these companies care about there 1/29 split of $10 million or $40 million, probably reputation is more important. Roger mentioned OURD went through a major ownership shuffle, if they wanted to maximize value they would have seen the coming bull and sat on it. What is likely the case is this was a distraction and small dollars to these owners and this was a clean way for them to get out and save face/honour the big portfolio of projects that the JCU management team had been looking after for two decades before this ownership shuffle. Take a look at the DML announcement, they mention Wheeler River and just group all the other together - there is a reason JCU went to UEX and not their other partners.
The UEX deal looks like a steal now sure, but they have been throgh DD and negotiations started in December, I'm guessing around the time UEX was trading around $0.16/cent and they did a PP for $0.12 in November. If you sell your house, you don't get to adjust the price at closing because the market has gone up in the next three months.
Take a look at the wording of the agreement, all DNN has done is delivered an offer to buy, doesn't say anything about talking to them. In the Crux interview, I believe Roger mentioned JCU came to them, DNN was a partner with them as well - did they reach out to them as well and DML didn't return their calls or they didn't even go to them because they didn't like the existing partnership.
Sure money talks and they might take the deal, but UEX at $0.38 cents, it had hit that point this year before the deal was announced so whats the downside now. Flipside, if the JCU deal goes through for OURD, we have a lot more price discovery and DML has played its cards a little too early on what it will cost to buy out 10% of Wheeler. Remember, Wheeler is sitting at $6EV/lb, sure JCU share might have a minority discount, I could flip that around and say if DML wants 100% they will have to pay a nuisance premium
Interesting times, GLTA