Venus is very vulnerable to a TO as a gateway to a TO of Rox. Venus has a market valuation of $28m. It has at least $7m in cash and cash equivalents (Bonds) and holds 2% of Rox.Venus has tenements that would have to worth at least $5m and probably more like $10m. Venus has mostly disgruntled shareholders as it is well known as a lifestyle company. A $35m bid would probably TO Venus After the sale of the non Youanmi tenements and use of Venus's own cash, the TO cost would be between $18m and $23m which also snares 2% of Rox. The Rox Board would be very aware of the threat posed by Venus as a stepping stone to a TO they do not want.Rox has repeatedly tried to buy out VMC's stake in Younami without success. They would have to thinking of a preemptive TO of Venus to de-risk Rox. 100% ownership of all Youanmi tenements is worth a lot more than $18m or so,
VMC Price at posting:
17.0¢ Sentiment: Hold Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)