Strongly agree Bull. Though... I have a feeling WGX will up their bid at least once.... Perhaps a ratio of 5:1 plus a cash consideration of $0.05 (approx $30m AUD). This would give MGV holders just over 20% of the merged entity. The offer will probably sit just over $0.35 a share for MGV, or around $210m.
The simple problem is, RMS can indeed offer more, because their script is basically valued at double WGX.
Cheers regarding the transaction Catalyst is making to the north. I cannot help but be surprised by the offer price! Bloody low. I can only assume Superior is bleeding cash and had not better offer made to them (though Catalyst seem particularly savvy in securing deposits beside the Plutonic plant).
RMS seeing it's share price move higher just compounds the challenge for WGX. I would prefer they double down on exploration and internal projects (GCY is a different beast, though potentially... something to be looked at).
In the end, I am a little puzzled at why WGX did not move on MGV whilst RMS was busy T/O BRB. They also could have a bought a lot more shares on market, potentially even bought out the major holder at say $0.30. All hindsight, but I just feel like WB played such a straight hand that.... it just isn't going to work when competing against RMS.
I also get the feeling that the MGVs quick acceptance of RMS' offer as small slight on WGX. The only difference in offer's was the cash, which... is a small amount. I mean, RMS just collected $70m from BRB! The irony of offering that cash to MGV shareholders ( and likely trumping WGX).
WGX Price at posting:
$1.58 Sentiment: Hold Disclosure: Held
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