I agree it is the most logical m&a for deep yellowthese 2 are no...

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Jaat308

2,594 Posts.

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02/03/21

16:59

Post #: 51459409
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Originally posted by thepick: ↑

The logical outcome has always been for DYL and MEY to merge. Rick Rule (a big fan of DYL) in a recent interview made it clear that he believes Borshoff should be more aggressive in driving an industry consolidation strategy. In the same interview, he refused to comment on MEY, probably to avoid drawing any attention to the stock. MEY is just the right size and is relatively low risk for DYL's acquisition strategy bringing the technology component critical for a viable Tumas and exploration projects to complement DYL's assets.
The current ratio is however out of step so MEY's Board will need to stay vigilant to ensure MEY gets full value in any transaction. The current Mrkt cap ratio is DYL:MEY of 7.4:1. Within a merged entity fair value is around 2.5-3x which can be achieved through a realignment of share prices or a premium placed on MEY share price in any offer. At current DYL share price, MEY share price should be 35c-40c for this merger to work for MEY
MEY registry appears to be tightly held so the Board has all the cards when dealing with Borshoff who must be getting more anxious about not delivering on his acquisition strategy.
Good position to be in for MEY Board and shareholders.

GLTA

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I agree it is the most logical m&a for deep yellow
these 2 are no strangers they have had talks in the past the marenica offered the u upgrade. Should work well for deep yellow it's in the same region ...But deep yellow declined for its own reason ? Maybe Why pay a percentage for the use when you can own the whole lot lock stock and barrel !
there was talk it is looking at other regions but could be a smoke screen?
if deep yellow said same region big giveaway !
anyway in my opinion marenica energy looks like the most logical target by far ?

MEY Price at posting: 13.5¢ Sentiment: Buy Disclosure: Held
3 Upvote

0 Great analysis

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