Carabella Res Ltd Nsw CBLLF

Cash and stock buyout by Pala Investments of KBLT

[lumpy13]

Allegedly a 66% premium but don't fully understand the logic of the new company, Nicket 28.

Any views/insights by any of you?

https://finance.yahoo.com/news/pala-investments-acquire-cobalt-27-130000270.html

[lumpy13]

So looking at this a bit more closely, Pala will keep the C$200m of physical cobalt and the Voisey Bay cobalt stream, which KBLT originally paid $300m (C$400) a year ago.   Current shareholders receive cash roughly equivalent to the pre-offer stock price (C$3.57 cash vs C$3.50 stock price yesterday).  But it should be noted that the stock price had fallen in recent months while the

[lumpy13]

The current KBLT market price (C$4.17) indicates that the market thinks Ramu is worth about 67 Canadian cents, or less than a 1/3 what Pala attributes it is worth.  

[hawkman1969]

Lumpy, I agree. A TD research report dated May 1 2019 had Ramu worth $1.18 USD and the other royalty streams worth $0.17.  Add the $5 million and giga metals and you get 1.40/share USD or about $1.87 CAD.  quite a bit less than the $2.18. TD put Voisey at a 12 month value of $3.81 and the cobalt at $1.70.  this was at $22.50/lb and cobalt was last at $12.70 so the value of these

[LittleHedge]

Regarding “For those that don’t know, the head of Pala is the KBTL’s CEO’s brother” Hi, I have been to the home pages of both companies and can not find a common surname between the managing partners, directors etc, maybe they are step brothers?  Can you update with who the brothers are?   Notice that the price is struggling to keep over $4 despite the ‘value’ of the deal being 5.75. &

[lumpy13]

It's interesting that KBLT's website has been changed and prior presentations of KBLT are no longer on the site.  Prior presentations highlighted the upside potential of the Voisey Bay stream and their physical cobalt. I thought there were two Milewskis but maybe there is only one.  Anthony Milewski is CEO and Chairman of KBLT.  If you search his name, he is also a Managing

[LittleHedge]

Thanks.

[LittleHedge]

Lumpy - your memory was correct. If you google these 2 words (no quotes):  Milewskis Pala - you will see a result that shows a preview as follows: Meet the Pala Team - Pala www.pala.com/en/team/meet-the-team.html Anthony Milewski. Managing Director. Biography. X. Anthony Milewski, Managing Director, Investment Team. Anthony has spent his career in various aspects of ... If you click that

[LittleHedge]

He left Pala last december according to another source.

[lumpy13]

But he continued to be listed in the KBLT presentations as MD of Pala until the last one (and, if I remember correctly, until a few weeks ago).   Very convenient how KBLT has eliminated all the old presentations from its site as the acquisition offer is counter to what was previously being said about the future of the company and its assets.

[lagodigarda]

What a scam.  KBLT bought the very nice Vale stream for C$400m plus C$200m of physical cobalt with shareholder money. Now Pala pays C$300m for that. Very suspicious the connection between Milewski and Pala, I am sure in the end they are sitting in the same boat, ripping shareholders off together. The market is valuing a Nickel 28 stock at about C$0.5 now, and not C$2.18 like KBLT wants us

[lumpy13]

Doing some rough back-of-the-envelope calculations, if you compare what was paid for Ramu and the other royalties/streams to the current value of the physical cobalt and what was paid for Voisey Bay, the ratio is about 80/20 vs the offer of 62/38. So, they should increase the cash offer by about C$1/share.  As I stated from the beginning, their numbers are bogus.   Personally, I'm

[lumpy13]

Not sure if it's been mentioned but if the deal doesn't proceed, KBLT owes Pala $15m.

[ScotiaOne]

"white collar gangsters"... well said indeed and appears to be very applicable. Anyone have any insight into whether any big institutional investors are cool with this deal?