Galaxy is currently exploring the opportunities of a potential refund of turnover taxes paid and rollover relief on corporate tax payable
- US$67.3mm tax payable in May 2019
Option 1Galan GLN raised $4m + $1m current cash.
Current market cap $40m. Offer $50m.
$50m less 30% tax offset = $35m (of which $5m is cash)
net cost to GXY Au$30m or US$21
Option 2Lepidico LPD $8m current cash.
Current market cap $120m. Offer $150m.
$150m less 30% tax offset = $105m
Less 12% already owned ($18m) = $87m (of which $8m is cash)
net cost to GXY Au$79m or US$56m
Note: Not sure if rollover relief on corporate tax for asset acquisitions requires to be Argentinian domicile.
Management have said they are considering rewarding shareholders.
Option 3
Buy back
The key to this quarterly will be tax minimisation strategies