It is noteworthy, that both AVL and TMT seem to be driven by a sense of urgency in advancing this merger proposal. The leadership of both companies appears resolute in their belief that this merger represents the optimal strategic path. This raises the question of whether the merger may be contingent upon a committed funding arrangement.
However, I remain unconvinced about the potential benefits of this merger, particularly from TMT's perspective. I am struggling to evaluate how the merger might enhance TMT's existing capital expenditures (CAPEX) and operational expenditures (OPEX). Additionally, the extended study and updated DFS are bound to consume time. It's uncertain whether someone would commit to funding the integrated project solely based on the merger, especially considering that the integration study and updated DFS will require time.
Furthermore, it is plausible that both management teams may be motivated by concerns regarding the current valuation of V and prevailing market conditions, leading them to view this merger as a means of buying time.
Predicting how this will unfold is challenging. These are just some preliminary thoughts.
DYOR
TMT Price at posting:
29.0¢ Sentiment: None Disclosure: Held
