RE:RE:MergerRainman01 wrote: If you have held this stock for some time and didn't just buy it you would be Entitled to .608 cents per share and 2.524 shares for every KRR share. Also there is a new company with shares to that is worth about .30 cents per share. I will be glad to be apart of the new company with gold on the rise and the fact that we are highly undervalued.
To clarify, anyone holding shares on the date of the actual merger will receive the equivalent of A$0.68/share or approx. 62 cents Canadian.
If you own say 1,000 shares of KRR you will receive 2,524 shares of WGX.AX +C$0.62 per KRR share +300 shares in the new SpinCo.
Currently 1,000 shares of KRR is worth $5,870 based on today's closing price on the TSX
If the merger happened today, you would receive 2,524 shares of WGX that last traded at A$2.40 that would have a value of 2,524 x 2.40 x 0.911 (exchange rate) = C$5,518 + C$620 (cash) = $6,138 which values KRR shares at $6.14/share. That is not counting the value of the shares in the new Spinout company that had an implied value of 15 cents/share at the time of the merger announcement.
It would seem to be a no-brainer to continue to hold KRR shares here or increase one's position based on the disparity in the value of the trading value of KRR shares on the TSX vs the total value received when the merger closes.