The situation that is developing could potentially end up like...

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nordesmic

4,280 Posts.

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02/04/24

16:30

Post #: 73152218
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Originally posted by slammin ↑

Can someone more experienced in this type of takeover (ie not a full takeover) provide some information/clarity.

Its looking likely they will succeed the minimum and depending if they get to 75%/90% potenionally trigger a compulsory takeover of all shares.

I'm starting to think I may not sell my shares and remain an Orecorp shareholder. Reasoning at (50.1% and less than 75%), Orecorp still owns the asset and we have big shareholders on the books ie PRU, SVM, Morgan Stanley and Samson Rock which would give you every confidence that funding is not going to be an issue. The management would change but the upside (to me) is exciting.

Why has Morgan Stanley and Samson Rock suddenly appeared and why hasn't SVM sold their shares now that they pulled out of the race.

PRU will only get ownership (directly or indirectly) of the asset via compulsory 100% takeover. On this scenario a new price has to be offered and surely at higher price than current offer which in my opinion is average. If this is the case remaining shareholders would receive payment 2 months after the current offer is paid to shareholders who accepted the offer (indicated in the Bidder Statement).

I personally believe the upside is greater to hold on but I am confused on which way to go and sure many other shareholders would be wondering the same. Maybe I'm crazy, lol.

Obviously if they do not achieve 50.1%, then the above is irrelevant unless PRU waives this condition..

I posted this as it would be good to get the thoughts of others on what the post offer period would look like on expiry. All the above purely my opinion, not advice so do your own DD.

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The situation that is developing could potentially end up like what happened with DCN last year.

Large corporate shareholders took up a 20% blocking stake to prevent a full takeover from GMD. DCN share price languished for 9 months before eventually DCN came and offered a 100+% premium to the 'market' price to take out the remainder.

I'm not sure such a situation will eventuate here. Silvercorp probably doesn't want to have $40M tied-up in a protracted battle. Same probably applies for Samson Rock. It is strange that SVM hasn't accepted the offer though. Surely they'd want to remove this uncertainty and just move on and get a free run with rising precious metals sentiment.

On the other hand, Perseus likely wants to get on with building this thing (and needs to bolster medium/long term production outlook) and that may be more difficult if they can't get full control of the company.

ORR Price at posting: 57.0¢ Sentiment: Buy Disclosure: Held
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