SPR spartan resources limited

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Prisoner24601

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16/03/25

20:20

Post #: 78286623
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Originally posted by calmbeforestorm: ↑

Let the games begin!
I was dead wrong about RMS bidding for SPR.
SPR - MC $2.049b plus options $2.140b
RMS MC - $2.541b
I assume it will be a full script merger.
At a nil price premium, the combined company will be owned 45.7% SPR shareholders and 54.3% RMS shareholders.
If RMS pays a 5% premium (i.e. SPR SP $1.68) the ratio is about 47% to 53%.
If RMS pays a 10% premium (i.e. SPR SP $1.76) the ratio is 48% to 52%.
At a slightly over 18% premium (i.e. SPR SP $1.90) the ratio is 50%/50%.
A small premium means exactly that small i.e. probably no more than 5%.
In my view the key is that a small premium will be very good for RMS shareholders (less dilution) and I think the RMS SP may go up potentially significantly. If I am right, then do not be disappointed by the small premium as the upside could be a much higher RMS SP. When mergers make sense, it is like 1+1=3. The premium is nowhere as much as NST for DEG (over 40%) but the external expert reckons NST are paying too much.
Whether or not the details are released on Monday or not there will be a TH from both stocks.
It will be very interesting to see how the RMS SP reacts once trading recommences.
Will another bidder come out of the wood works? We may not know for at least a few weeks or even over a month if one does emerge. SPR has a very attractive resource. That may be the best outcome i.e. a bidding war.

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Didn’t Euroz, which is involved deeply it would seem, just put a $1.90 price target on SPR a couple of weeks ago. That will surely be a base case. I fully expect to see a $2 handle, though the Spartan ethos may be waning.

SPR Price at posting: $1.60 Sentiment: Hold Disclosure: Held
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