Agree, I don't think PRU would want a JV with Silvercorp, but they might agree to one with ORR.
However, I don't think ORR would want that, I think they'd prefer a sale.
Under those circumstances, it's just a matter of ORR and PRU deciding on a price, and if PRU do the due diligence and decide to go for it all, then a price it will surely be.
ORR's current market cap is around A$220m, and I think they'd want a 40% premium, though they may agree on 30% for a cash sale, which means somewhere around 70 cents as a compromise, roughly.
I'm not sure PRU would throw that much cash at ORR, so it might involve some scrip as well.
PRU obviously have something in mind, and they'd like to see how ORR react to their offer(s).
Anyway, its all speculation, and it's fun to do so, at least, I always find this part of it the most fun.
We all had a great time with Cardinal Resources, but it did take too long in the end, over a year.
And anyway, I think ORR owe it to themselves, and their shareholders, to hear what PRU has to say.
The game's afoot.
(Shakespeare. King Henry V. Act 3. Scene 1).
"I see you stand like greyhounds in the slips, Straining upon the start. The game's afoot:
Follow your spirit, and upon this charge ..."
Gw
ORR Price at posting:
48.5¢ Sentiment: None Disclosure: Held
