re: valuation of smm: a174 mill offered
Paladin Resources offers $130 million for Valhalla Uranium By Karl Heilman 10 Jul 2006 at 11:27 AM
Paladin Resources Ltd. plans a A$174 million ($130 million) takeover offer for Valhalla Uranium Limited, consisting of one Paladin share for every 3.16 Valhalla shares.
Paladin, a Perth mining company, said Valhalla's directors have unanimously recommended that Valhalla shareholders accept the Paladin offer, in the absence of a superior offer. They have also indicated that they intend to accept the Paladin offer with respect to their own shareholdings.
Valhalla, a Western Australian-based resource company with interests in a number of uranium projects in Queensland and the Northern Territory, has agreed to pay Paladin a break-up fee of about A$1.2 ($897,000) million in certain circumstances".
_________________________________
COMMENT: This is a scrip based offer based on 120 mill vul shares or about $A1.45/share.
As I already mentioned, this fire sale has no relevance to SMM who could double their Uranium holdings to 150 mill lbs early in the new year.
However, SMM has 188 mil shares, so in a hypothetical fire sale early next year, any offer would then be 120/188*2*174 mill or $A2.22/share but increased by the Uranium price in that time.
IMHO, SMM holders should not sell their shares.
In the meantime I hope that some effort be made to overturn the Qland and Greenies selfserving no Uranium mining rule which keeps down the price of Uranium companies.
Gerry
SMM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)