GCL are not valuing 5% of LNC at $4.50 per share. They are...

GCL are not valuing 5% of LNC at $4.50 per share. They are valuing their JV at $120M higher than they are paying. LNC would of begged them to move the money out of the JV and into the LNC share price and thrown a token 5%of equity at them. LNC would have wanted to generate, exactly this, the perception that someone is willing to pay $4.50 a share. If the equity placement had of occurred independently, it would have been a strong statement. The fact it is occurring in parallel with a JV announcement means that they have valued this deal as an entire package and have just shifted the % of value from the JV and into the equity placement to move maket sentiment upwards. I give it to them it's smart because not many people here could actually value the $ worth of the JV, so can't see the $120 hole in it. Could be a good deal, could be not. Be wary of IP JVs with chinese parties, but be more concerned at the time it will ntw take until the signing of legally binding documents, could be a long time, could be never.


I like the announcement but have my doubts