Spot on @butcherboy - a lot of the people complaining about...

Spot on @butcherboy - a lot of the people complaining about "where is the premium?" seem to fundamentally misunderstand the nature of this transaction. This is a merger of equals done on a scrip basis, so it is normal that there is no "premium".

Instead, both parties have determined that the other is fairly valued at the present time, but that together they will achieve more than if they go it separately. So neither party has asked for a premium, and the respective stakes that GXY and ORE will have in the merged entity are exactly equal to their current market cap. That is:

- GXY: $1.864bn
- ORE: $2.206bn
- Combined: $4.07bn

Doing the maths, 1.864/4.07 = 45.8%, and 2.206bn/4.07 = 54.2% - ie the exact proportions that each group of shareholders will hold in MergeCo.

If ORE had paid a "premium", all that would have meant was that it wasn't actually a merger of equals, but rather that they valued GXY more than they valued themselves, with the result that ORE shareholders would have been diluted, and it would have been a windfall for new GXY holders at the expense of existing ORE shareholders.

I feel sorry for anyone on this thread that actually sold out today on the basis that they weren't getting a 'premium', because that seems to fundamentally misunderstood the nature of the transaction. It is very normal for mergers of equals to take place simply on the basis that the combined entity will be more efficient than each of the entities on their own.