Yep, the offer is very badly handled, and you have to wonder why. It is done on purpose. Look at the market depth, support at 3.7c and cap at 4.7c.
The offer is 34m shares (note quoted on the Nasdaq on a 10:1 basis that is 10 JSE to 1 Nasdaq). Divide 34m by the number of MLI shares 820 m = 0.0415, this times the current DRD SP of A$1.12 = 0.046cps. This is the value of the DRD offer for each MLI share. This then is the arbitrage in action.
A holder of DRD shares would accumulate MLI shares and sell the equivalent of DRD shares, a cool 15% risk free profit plus whatever it can get from selling the MLI shares after taking hold of the DRD shares.
Someone is making a bundle out of this poorly informed takeover.
2nd company update - drdgold deal, page-2
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Last
1.8¢ |
Change
0.001(5.88%) |
Mkt cap ! $23.82M | |||
| Open | High | Low | Value | Volume |
| 1.7¢ | 1.8¢ | 1.7¢ | $22.78K | 1.336M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 3 | 800000 | 1.7¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 1.8¢ | 1088999 | 2 |
View Market Depth
| Last trade - 16.10pm 09/08/2024 (20 minute delay) ? |
| LRL (ASX) Chart |