RE:Minority shareholdersHow do you figure 52% of ETG Unkal?
Horizon 25%
Rio 9%
TRQ 7%
Options/Warrants if fully diluted another 7% - mostly to management.
Management about 5%
I realize that adds up to 51%, but that assumes Horizon and ETG management in league with Rio to get a low valuation. Don't see that coming. Furthermore Rio's consolidated 16% leaves a majority of the minority target of at least 42%, and I believe they actually need 2/3 of the minority ... but in any event they don't have the numbers unless there is tripartite collusion between Rio, management and Horizon, not very likely considering the cash payout people want a clean getaway. Remember that a takeover will also trigger nice severance packages for all the senior ETG executive team.
I don't believe ETG management is looking out for anything but a nice golden handshake at this stage.
As stated elsewhere (ETG BB) once this TRQ fumble is resolved by a better Rio all cash offer, the probable next step to satisfy Mongolia is OTLLC buying out ETG, and although we all find Rio an unpredictable actor, remember the upside for ETG a is much greater from current valuation and the total value at stake compared to the investment at OT, the value of the reserves being secured, the potential upside of the JV and 100% ground, is far less problematic than the TRQ valuation appears to have been.
And it leaves lots on the table for Rio to mine the upcoming expected copper boom to very healthy profits, shared with their Mongolian partners.
Very nice day when the markets bounce 2% almost across the board on the risk-off equities and commodities plays - CU and AU both up 2% or better ... and the DOW!
Ya just gotta luv it.
I wonder if Bold Baatar is in a frame of mind to happily watch the market start to chug away from what Rio let him offer? I doubt it. Hugs, man, you know, end of the day the regulators and TRQ special committee are doing you a favour pushing towards getting a clean and legal offe we can all walk away from, no more lawsuits, no more delays, just a fair payout and you get a very nice asset indeed.
cg