Post by
Oregonduck on Jul 22, 2018 5:50pm
No bidding War
Mr. Market says no bidding war expected. The last stock price trading at cash price of $0.24 says there is no White Knight waiting in the wing. It is generally accepted that a stock will sell above the takeover price should there be other bidders. Also, this is a non-hostile takeover with full support from Management based on a pre-bid lockup agreement negotiated. Minority shareholders challenging under the CBCA, s 241(2) - Oppression Remedy - will likely not be successful since the 50% premium to market appears reasonable based on takeover case law in Canada...No one except speculatively maybe Rio Tinto which controlled the nearby Diavik Mine may consider upping the takeover bid... It is noted that, based on NI43-101, the Chidliak mine's After-tax Net Present Value (NPV) will only be $668 million for the life-of-the-mine, and the capital costs will amount to $520 million for building out the infrastructure and the processing plant. No doubt, it is hugely disappointing for minority shareholders, but Eric & Robert will get their pound of flesh for some $42 million from this deal, or as they say provide liquidity to get the hell out...50% premium is nothing for long-suffering PGD shareholders. Some penny diamond stocks can make 50% in one day, and shareholders realizing 4 or 5 baggers on exploration because of their low price.
Comment by
northmark on Jul 22, 2018 7:31pm
If you were a large miner like Rio Tinto, why wouldn’t you throw your hat in here. What’s another 50m on top of the present offer. I bet Robert is on the phone right now.
Comment by
mill44 on Jul 22, 2018 9:26pm
I hope you are right, Mark but it's hard to argue with Duck's points. All what's left of the big dreams of this forum is hope that this is not just Robert throwing in the towel. We can guess for a few more weeks what his plans are, the way we have done it for the last 4 years and then the fat lady sings. That's what Ekim was waiting for, I think, the fat lady.
Comment by
northmark on Jul 22, 2018 10:36pm
I think we can all agree that there is a good chance that Chidliak will be a mine someday.
Comment by
mill44 on Jul 22, 2018 11:44pm
When I brought it up during the years, people called me a basher, but it seems it's true. Chidliak's success does not translate into the shareholders success. Couple more weeks to prove me wrong. I don't think that there was ever a time that I wanted that to happen more than now. I think an extra 20c would turn a lot of disappointed people into happy ones.
Comment by
griefman on Jul 23, 2018 12:38am
Like Mill, saying he’s known all along, I’ve said a few times, that who cares if this will become a mine, it won’t make a difference to the little guy at this stage, but I’m not predicting!!
Comment by
shneps on Jul 23, 2018 5:44am
Would be more then happy to see anything, but I'm afraid l feel our hopes have been dashed. This was a process that started almost three years ago and the 24c deal was the best that could be achieved. I believe it's the cheapest deal but also probably the only deal formally presented. A shame for everyone but DeBeers. All the best Northmark. Cheers
Comment by
shneps on Jul 23, 2018 11:18am
Trading volume is certainly drying up considerably today.
Comment by
mill44 on Jul 23, 2018 12:27pm
The smart money was the no money like Sprott. They walked away with 80k without putting a penny in.
Comment by
schocor on Jul 23, 2018 12:33pm
With a DeBeers buyout at $.24 and a stock at $.24; people ARE betting on a bidding war. Nobody buys a stock expecting to lose (price -commission = loss).
Comment by
mill44 on Jul 23, 2018 12:40pm
Not much traded at 24c. The volume was in 23.5c and in big numbers that is a decent arbitrage for no risk.
Comment by
schocor on Jul 23, 2018 1:24pm
I for one bought every share I could get my hands on at $.235.
Comment by
cudjo on Jul 23, 2018 12:37pm
thought I saw an interview from RR last year saying they had bought stock as well as the 2 million at 20 cent option. If they bought between the last rights, (pun not intended, but excellent in this case, lol), and last week, Double R is grinning like a cat. Bobbie and him are pretty close I heard.