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Ann: Orocobre and Galaxy Merger - Announcement, page-298

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MattJ2020

58 Posts.

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20/04/21

00:04

Post #: 52578894
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Originally posted by TazD: ↑

Hi MattJ,

Having been a Saracen shareholder which was merged with Northern Star Resources (NST) recently as a merger of equals I have some experience in a similar transaction.

Under the Scheme proposal you will receive 0.569 ORE shares for each GXY share. So if you have 1000 GXY shares ORE will compulsory acquire them and issue you 569 shares in ORE. You will then be a shareholder in the merged company which as a previous poster suggested could use the ASX ticker of ORGY.

Unless the Scheme looks in doubt for whatever reason the share prices of GXY and ORE will trade closely in the ratio of 0.569 to 1 up until the Scheme Implementation.

The Scheme Implementation is when GXY shareholders get ORE shares and is planned to occur mid August.

Before this happens GXY shareholders will receive an independent expert's report and have a vote to approve the Scheme. It will require a simple majority of voting shares and voting shareholders to approve.

I would expect this scheme to get up fairly easily and I think it is unlikely a third party will come in with a superior bid but not impossible as the Lithium market is of a lot of interest. Note break fee is $18.6M for both parties.

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Thank you! Appreciate your information.

GXY Price at posting: $3.83 Sentiment: None Disclosure: Held
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