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Nobody seems to have mentioned that this needs shareholder approval...by both BODs...
So is it designed to flush out a bid from BHP...why would they approve a 20% dilution for assets they're not interested in....or NCM for that matter...?
This thing has legs and the Board needs a result before the AGM...
Softy by both companies not both BODs...that's already in...
RK, I'd have thought they would have already had the nod from BHP/NCM. Surely the board wouldn't risk taking this to a vote only to lose ? They'd be out on their ears pdq.
This has been done to make a transaction easier and on that basis I can't see why BHP would object.
BTW, it'll be interesting to see if Berry make their views public.
If they already have BHP's approval it doesn't make sense for BHP and it would require a RNS anyhow...
I think this is a white knight defence move to get better terms for both comoanies in a takeover...
Otherwise where on earth is SOLG going to get the cash to continue, let alone to pay out the CGP holders that elect for cash...?
100% red has been selling...
Theres no way I would vote for this deal.
The combined coimpany will need even more cash than before...
So why would CGP support it...?
Because this way they get far more for their shares when a bid goes through...just look at their SP for the last year...they've been drifting into oblivion at a price less than half what Nick offered and a quarter what they valued the company at...
Well...what would I know....but is it possible that's where Matsui &Co come in, or is this nonsense?
RK, doesn't it occur to you that the board has already thought about the issues you raise?
Hellodolly:
To answer your question to me earlier, obviously I don't have all the answers but my take on it is because of Cuzzubbo's comment in the RNS,
I quote;
"Darryl Cuzzubbo, CEO and Managing Director of SolGold, stated: "It has been my view from the start that SolGold and Cornerstone are more valuable together than apart. This is an exciting value enhancing transaction for all stakeholders. This Transaction also sets the stage for a strategic review of the Combined Group as we methodically assess options that are in the best interest of our shareholders."
Also this :
Brooke Macdonald, President and CEO of Cornerstone, stated: "This merger transaction makes sense for both sets of shareholders. The merger allows our shareholders to maintain exposure to the world class Cascabel Project and is a step towards maximizing value. Having considered the landscape, we are convinced that combining forces with SolGold will unlock significant value for all shareholders. The strategic review for the combined group aligns with our views on the best path forward. Today represents a significant milestone for all Cornerstone stakeholders and I would like to thank them for their support over the years. "
Reading between the lines, I think they are saying they have paved the way for them to recoup their own value in SOLG, the rest of us benefiting is merely a consequence.
Just my take on it that's all.
Jezzoo, thanks for the explanation, it definitely seems like positive news.
"BTW, it'll be interesting to see if Berry make their views public."
Addicknt... for goodness sake... are you really interested in what some tin shed fund in the leafy suburbs think? What about Citi .... your advisors.... do not think they have advised well?? Perhaps we should have employed Berry street capital lol! They are a no one special and yet you want too hear their view?
Fort, yes, I would.
More fool you then. You do know that it was Berry Street Capital that insisted the best way forwards was to get an equity raise done 'after the pfs' rather than before.
Mmm.... then they went on a rant when SOLG tried precisely that. Perhaps if SOLG had done an equity raise for $40m or so back in March before PFS (in the high 20's) then we could have avoided the likes of Bozi and others wetting themselves about going into administration. Berry street capital got what they wanted but they didn't like it. You go ahead and listen to them. They seem like the type of cowboy outfit that cold call punters about stocks worth investing in... chocolate fireguards are all the rage addicknt. Go get some.
If wanting to hear the views of other shareholders, particularly those of a professional, makes me a fool, so be it.
I think it would be easy to argue that it's you who's the fool for not being willing to listen to others.
Fort, wind your neck in, you don't know what you're talking about. The founder of Berry Street Capital was previously a partner at Paulson, Head of European Investments and PM of their European Opportunities Fund. This is not some tin pot boiler room outfit, it's the founders running their own (considerable I expect) money and some outside money and I expect they know full well what they are doing. Paulson specialises in events and merger arbitrage do they not? These guys are in it for exactly the same reason as you, they are expecting a takeover of Solg at a large premium to what they paid for their shares.
No wonder they were annoyed when the Board's attempt to fund raise whilst being overly cute in terms of managing the size of certain shareholdings resulted in no funds being raised, multiple execs leaving and the SP nosediving into the teens right as global markets were circling the drain.
And FYI the Fulham Road in Chelsea is not the leafy suburbs.
I thought it was you the other day who told someone to "play the post, not the man"... All I see from you this morning is attacks on Addicknt and Bozi and levelling your usual allegations about people having ulterior motives or not being invested if they dare to make valid points about the potential costs and downsides of this deal. Solg is going to have to issue hundreds of millions of shares to buy CGP, in return for no cash. More shares for the same total value than if they had done this deal when the SP was in the 20s. And the combined entity is still going to need to raise short term financing to get beyond year end.
So yes, this is likely a great long term outcome which permits the strategic review and opens up much better avenues to release shareholder value. But it isn't a free lunch. Just because people point that out doesn't mean they aren't invested.
This kind of deal will have been many months in the making. Follow up with MRE2 and addendum on schedule and the present board may well get much better support than previously expected at the next AGM … .. good job
Meanwhile the SP will likely now drift slowly back...usual story of sell on the news for now anyway..
Nothing ever going ( up or down....) in a straight line. ....it's up to any individual to make a call, sometimes you win and other times you don't.....
After today news our SP future level even in the near term looks a little bit (at least....) a wee bit rosier....IMHO.
Time to make your call.....:)
GLA SOLGers.
Autobots destroy every rise max until they go this will never move in the direction it should imho ,saying that a takeover will destroy them completely the institution using it will disappear imho so not long to wait ,one thing I can tell you is that they will try run it up this afternoon as they have been doing for last couple of years then close the books into sells ,the tax will probably help a rise a touch ,I said 25p close this morning but think unlikely now they got a stranglehold here atm
Like I said Bubble. 22p would be fantastic, lets see what happens from 2pm onwards, that's when Solg normally makes its move...
Autobots hard at work selling right now, which persuaded me to buy more...
170603 in three chunks at an average of 18.95 was hard work...
GLA...blue skies ahead and this has a long way to go IMHO...
same here RK. exactly the same price 18.95, got 68K more