I am quite baffled and not able to get my head around why LNK price has declined by ~20% but PXA price is hovering around 15.45 and did not decline in proportion with the LNK price decline.
As LNK owns 42.8% PXA shares with approx valuation of 1.172 billion assuming PXA price 15.45, even if the LNK acquisition by Dye & Durham falls apart, wouldn't shareholders who enter at this price levels get good short term returns provided LNK ends up providing in-specie PXA distribution to shareholders?
If the acquisition goes ahead, there is a great potential upside, isn't it?
Am I being very naive in my thinking?
What are your thoughts?
Thanks,
LNK Price at posting:
$3.57 Sentiment: Buy Disclosure: Held