24th June may be the date that the ravens get sent out - but this is what was set out in the bid implementation agreement 30/05.
"It is expected that Galaxy’s Bidder’s Statement and General Mining’s Target’s Statement, containing further information about the Offer, will be posted to General Mining shareholders in June 2016.
Further details about the Offer, the conditions to the Offer, deal protections and proposed timetable are set out in the Implementation Agreement, which will be released on the ASX at the same time as this announcement."
and this
"The Offer is expected to close during the third quarter of calendar 2016."
(this simply because the offer can be extended beyond the 24th July at Galaxy's discretion)
and this is very relevant too -
"The Implementation Agreement and the Offer are subject to typical conditions precedent, including: a 90% minimum acceptance condition, which (at any time prior to Galaxy receiving acceptances representing 80% of General Mining shares) can only be waived with the consent of General Mining;"
Lets put aside that last clause for the moment - that basically does away with the vote if GMM writes a nice signed letter....
The same doc says that
4.94% of shares have already agreed.
add 1.98% that GXY own in the company
and the 10.56% (!!) that Fotios owns.
Thats 17.48% already agreed. It will be a push over for the rest.
At beyond 50% Galaxy technically have control.
at 80% Galaxy could de-list GMM and turn it into a private company.
This is the point where they can write their own rules about the merge.
Funds/Instos don't stand in the way of these things and the "No" voters have disappeared these days - replaced with shiny new arbitrager hunters.
It will be interesting to see when conversion/borgifying of GMM shares for all of us voting "HELL YEAH" actually takes place and how long the lingering arbitrage gambling period continues to play out.
The idea of this new, merged Lithium Giant is obviously driving share market reaction at the moment. Suddenly, we can do away with halving and hoping that the jv remains in lock-step.
If our present is de-risked by Mt Cattlin going into production - then this merger de-risks the future plans for SDV to a great degree. Rather than dilution being a problem - mathematically it produces a bigger and more profitable company immediately, with more access to finance and better earnings per share for us.
One of the huge benefits will be having the 2 MDs working closely.
Michael Fotios - the man behind Northern Star who set up GXY and Mt Cattlin to succeed
AND
Anthony Tse - the money man, Chinese deal-maker who has shown his skill in reversing the company's balance sheet, a masterful seller of the company's future to the funds and putting himself in the industry's spotlight at the start of this boom.
The merger is pure genius. I would guess that the plans for this existed as far back as the original JV - but the timing now is perfect. It sweeps the field. The future entry into ASX 200 and Hong Kong Stock Exchange will propel this to a more global market who are all looking for a strong pure lithium play.
Its hard not to see anything that may stand in the way of this current rising trajectory for at least the next 2-3 years.
Good times for all Galaxians.
GXY Price at posting:
56.8¢ Sentiment: Buy Disclosure: Held
