$20M Takeover bid - Aussie Stock Forums

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  1. #1

    Default $20M Takeover bid

    Hi all.

    A South Australian mining company (HMR) that i was looking at investing in, is now the subject of a takeover bid from a Canadian company (Mega Uranium Ltd). Their $20M offer values HMR shares at approx. 40% beyond what they are currently worth.

    i just have some really basic questions i was hoping i might be able to get some answers to.

    it looks like the offer will be officially presented to shareholders on 10 Feb. Is there any issues involved with buying shares after an announcement like this but before the offer is accepted/declined by the company....i.e. Is it worth trying to buy shares during this period? will i even be able to buy shares in HMR during this period? What would happen to any HMR shares i may own if the takeover offer is accepted - will there even be a HMR anymore?

    As far as terminology is concerned, what exactly is an off-market scrip offer? Does this mean that an existing HMR shareholder will have shares in both HMR and Mega if the offer is accepted?

    just trying to get my head around this at the moment, all responses appreciated.


  2. #2

    Default Re: $20M Takeover bid

    It can vary and I ahve read about trade systems based on takeovers

    An example would be GGN
    06/12/2005 IAMGOLD Corporation to acquire Gallery Gold
    price jumped 37 to 42 cents after the ann, and kept climbing, now about 53 cents
    I don't know much about this and maybe the climb was due to some good news that occured for GGN in its own.

    Others seem to just rise to the bid price and go no furhter

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