RMS was trading at 2.80 a share on March 10, before the revelation of the 17-year mine plan that crashed the price (a mine plan that will no longer be on the agenda as the companies combine).
So even if there is ‘only’ a recovery to that price, the value of the share component of the deal for SPR investors goes up to about 1.93, plus we get the extra 25 cents in cash.
That’s 2.18 a share, only if RMS gets back to where it was 10 days ago.
1.78 isn’t the end result of this deal, as far as I’m concerned, even if no other bidder emerges. I’m prepared to be patient to see where the other 1+1=3 benefits are going to emerge.
SPR Price at posting:
$1.75 Sentiment: Hold Disclosure: Held
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