RE:RE:RE:TOU to Buy Crew Energy for $947 Million in All-Stock DealMeh, I might have got that math turned around a little bit for the ARX-KEL deal.
3 KEL for every 1 ARX would only come to about 65 mil shares added on so quite doable.
It's a good thing they are in charge. LOL
GLTA ARX BULLS
Quintessential1 wrote: It was a pretty cool move by TOU getting Crew at the top of their trading share price value with no additional premium. That being said Crew got all of their debt covered and shareholders just got a nice little dividend which is more than they were getting before. Judging from the rise of both TOU's and CREW's share prices the market likes this deal as they should.
It would have been a nice pick-up for ARX but at that valuation and all shares it would have nearly doubled ARX's share count again and added debt. The timing might not have been the best with attachie not quite up and running yet. Again with that being said I wonder If KEL would entertain the same kind of all stock deal to the high side of their trading level? At a 52 week high of $8.16 that would be about 3 KEL for every 1 ARX share and would again double ARX's share count. Less debt though and KEL shareholders would get a better dividend.
IF it was ARX would I take a deal at the top of the trading level? Nope. But ARX is trading near the top of their 52 week highs and quite frankly KEL is down only 30% off of theirs. The reason Crew could be taken out at their 52 week high is because they were trading down 70% from it. ARX is only off 5% 52 week highs and paying a decent div. So if they are coming for ARX I hope they bring their war chests because a 52 week high takeout offer just isn't going to cut it. Now if you want to talk ATHs of say $32-$33...you're still low ...LOL.
EASY HOLD!
GLTA ARX BULLS
Trapped wrote: This move is so good to see. Everyone knew this whole sector has been significantly undervalued for years, but consolidation changes everything.
Congratulations to everyone who bought in / added a few bucks ago.
Cheers and GLTA ARX Bulls!
Quintessential1 wrote: So much for my hopes of a Crew pick up....good deal for Crew and TOU...congrats to both.
The all-stock transaction is valued at approximately C$6.69 a share, representing a 72% premium over Crew’s closing price on Friday, according to a statement from Crew on Monday. Crew shareholders will receive 0.114802 of a Tourmaline share in exchange for each Crew share held. The transaction includes C$240 million in Crew’s net debt. https://ca.fintance.yahoo.com/news/tourmaline-buy-crew-energy-947-115638535.html GLTA ARX BULLS