ORECORP LIMITED (ASX:ORR) - Ann: Silvercorp - Notice of status of defeating condition, page-7 - HotCopper | ASX Share Prices, Stock Market & Share Trading Forum

Originally posted by BerserkWarrior: ↑

I hold both PRU & ORR. Zero incentive for PRU to bid? Why? They want ORR, that's obvious & they have tension in bidding thru' SVM. When PRU announced their bid it was at a cash equivalency to SVM's combined cash & script. That's history with SVM's share price escalation that allows the ORR BoD to highlight the discrepancy between the offers. The pricing tension arrived by virtue of SVM's script being slowly re-rated.

I beg to differ on PRU having the benefit of waiting & neither SVM for that matter. In the short term yes they can but in the medium they have a sizeable production hole they need to fill. PRU have already gone down the acquisition path to purchase a project that is for geopolitical/risk reasons now currently on ice. They need something & soon & so do SVM. On SVM walking in any haste, I wouldn't be too sure. What are their organic growth options? They've already walked away from paying over the odds for CLA. Do it again with ORR & i can't see too many target companies in the future being interested in engaging with them. Silvercorp have some mature assets as you well know. They're not out there trying to buy assets and park them on a shelf. Both PRU & SVM arguably need a project that gets into production in the next 24-30 months.

I see it playing out differently to you & you may well be right but i think PRU will bid this at least once more esp if the SVM share price keeps re-rating. Happy to see where it goes. Thanks for an alternative viewpoint

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zero incentive for PRU to up their bid is what I meant. The way for shareholders to have forced PRUs hand was to tender up maybe 40% to SVM early and PRU would have to show their final hand, if there was a willingness to increase.

instead SVM most likely walks this Friday. If you were happy with the Pru offer should have just taken it from the get go. So missed opportunity for Orr shareholders to get a higher offer.

anyways, Svm doesn’t need something. They have very large reserves and their stake in NUAG is their long term future. But they’ve repeatedly shown savvy making bids on the cheap and walking away with cash profit because they are value investors. If Svm was interested in paying more they’d already have upped their offer. Remember, it was four years ago Svm made its bid for guy. They were ultimately outbid but not before quadrupling the value of their stake and walking away with tens of millions in profit. They’ve not made any additional m&a moves until cla late last year. company management isn’t in a rush. When cla shareholders refused, Svm walked because that project wasn’t, in their mind, worth paying more for given the country risk, project risk, capex, etc.

svm ain’t upping their offer here. The only question now is whether Orr shareholders will tender to Pru or wait for their share price to tank and watch someone vulch it for much less later this year.