RE:RE:RE:Inefficient marketBased on this summary, the implied value per share of SCR was about $40.00
Market cap 8.6 bil div by 214 mil proforma sh o/s = 40
Trading started at about $30.00/sh
Per Pipestone / Strathcona press release:
Transaction Overview Pursuant to the Transaction,
Strathcona and Pipestone will be amalgamated to form a new corporation, which will continue as "Strathcona Resources Ltd." ("AmalCo"). Following completion of the Transaction, existing Pipestone shareholders will receive approximately 9.05% of the pro forma equity in AmalCo on a fully-diluted basis (approximately 8.87% basic), equating to an exchange ratio of 0.067967 AmalCo shares per Pipestone share. Existing Strathcona shareholders, comprised of Waterous Energy Fund (“WEF”) (99.7%) and Strathcona employees (0.3%), will own the balance. The exchange ratio implies an initial market capitalization of approximately C$8.6 billion1, which, when combined with approximately C$2.9 billion in pro forma debt outstanding on closing of the Transaction, equates to an initial enterprise value of approximately C$11.5 billion.