RE:Slush Fund - NVA Shares JR's votes seem amateurish if you ask me. The motions pass comfortably despite that.
I agree that no one else will acquire NVA due to POU's 16% block but I'm not sure how a 3:1 acquisition does anything for NVA management or shareholders?
Unless there's a premium why would they agree to it? If they hold onto NVA shares they'll have a pretty sweet return over next year and a half. Shareholders could simply sell their NVA shares and buy POU if they want 3:1.
I can't see NVA Shareholders ever approving it without a premium.
MyHoneyPot wrote: You can get a sense of the love relationship between POU and NVA in their recent annual meeting, where JR only voted yes to picking a new auditor, and No to all the management and the board.
So there is a little uncomfortable feeling of offside there. I think the NVA value north of 400 million dollars is a lot of cash, and he just carved off 50 million for Willesden green, but there is still a very large share holding there, and no one will buy NVA without first making a deal to tie up POU's shares.
I think the threat is real, unless a better opportunity comes along for the capital.
I think the deal JR wants is that the long term future for NVA shareholders is better served as part of POU buy NVA has a wild idea in terms of the evaluation, and when you look at them the current production numbers and commodity profile is great and i think NVA is an assets they understand very well, and so its a good fit.
The challange is to get NVA to feel comfortable as a part of pou.
I don't think they would offer a big premium, especially if they were using POU shares right now.
3:1 is my guess
IMHO