Ann: Scheme Meeting Postponed, page-9

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nordesmic

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01/12/23

13:30

Post #: 71219206
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Originally posted by Gwaihir ↑

Yep, Silvercorp is Shandong, and PRU is Nordgold.

The Chinese wanted Cardinal, so Nordgold kept matching the bids (similar to PRU simply telling everyone they will continue to vote against the takeover), until the Shandong bid got so high that Nordgold folded and simply made $200 million in profit and took the easy cash - it was money for nothing really. Easy money for Nordgold, and potentially easy money for PRU, depending on how bad Silvercorp want ORR.

Shandong had to eventually double their initial bid, forced up by Nordgold.
If the same takes place here, Silvercorp may have to offer 30 cents a share, or more, and an increased ratio of shares, before PRU fold and simply take the easy money - money for nothing.

PRU seem to have very little to lose, and potentially a lot to gain, in cash and Silvercorp shares, or in acquiring the gold project.

Silvercorp are a Chinese company, so let's see if their want is similar to what Shandong's was.

This is fun.

Gw

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I see Silvercorp being severely constrained to up their offer materially.

They are US$500M company and need to fund a US$500M project if they manage to complete the take over (although do have US$200M in cash). This ain't Shandong or Nordgold.

Issuing a load more new stock would be pretty dilutionary pretty quickly too.

Their last 'increased' offer was a bit of a joke since it was below the original implied 60c offer.

They bought a pistol to the fight and Perseus have a bazooka of cash reserves and liquid, solid scrip.

ORR Price at posting: 50.5¢ Sentiment: Buy Disclosure: Held
6 Upvote

0 Great analysis

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