SDL - Sundance Resources

[AussiePaul72]

Announcement ready to be released ........titled 'Gindalbie & Sundance Proposed Merger' (GBG) ......... wow .....this is huge for both companies in my opinion .....will be interesting to see details!!

 

[Risky Trader]

GBG / SDL merger proposal released

http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00761980

http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00761982

 

[Djayness]

Merger announcement is out and theres like a 57 page document (pdf) that im madly reading about. What does it mean if they do merge in regards to our shares?

The status has been set to "adjusting" so we will see what the market thinks about it quite soon. Interesting.

 

[Risky Trader]

Regarding the share

Usually the basic rule is

total net assets value from combined companies / total shares = new share price
holder of old shares (either companies) have options to buy new shares at certain price

But... this merger might be different...

 

[michael_selway]

Regarding the share

Usually the basic rule is

total net assets value from combined companies / total shares = new share price
holder of old shares (either companies) have options to buy new shares at certain price

But... this merger might be different...

Thanks MS

"Details of the Agreement and Offer
Under the terms of the proposed Scheme of Arrangement, Sundance shareholders will receive one (1) Gindalbie share for every
two (2) Sundance shares they hold. Based on the closing price of Gindalbie shares on 21 September 2007 of $1.70, the offer
values Sundance at approximately A$1.6 billion and represents a premium of 14.9% on the closing price of Sundance shares on
21 September 2007 of 74 cents, and a 34.5% premium to the 30-day volume weighted average price (VWAP) of Sundance
shares.
On completion of the merger, the new entity would have approximately 1.43 billion shares on issue with an estimated market
capitalization of approximately A$2.4 billion based on the closing price of Gindalbie shares on 21 September of $1.70. Gindalbie
securityholders would hold approximately 35% and Sundance securityholders approximately 65% of the merged company."

 

[nikki]

is SDL a speculative buy anymore? i assume that now SDL's price is linked to GBG. anyone know how on earth this merger will be debt free or is that simply because SDL has a lot of money already which it is using for its studies.

this is not good for the major shareholders of GBG given the dilution of their shares. i assume we will see a fair amoung of GBG shares dumped by major shareholders who may not like the move?

 

[Djayness]

Its already happening, GBG just went down almost 3% whilst SDL went up by around 11%, there seems to be mixed emotions about the takeover but as an SDL shareholder hey im all for it!

 

[Fab]

Its already happening, GBG just went down almost 3% whilst SDL went up by around 11%, there seems to be mixed emotions about the takeover but as an SDL shareholder hey im all for it!

I am wondering why this deal is good for SDL and not for GBG? Shouldn't it be good for both? I am an SDL holder so I am happy but then I am not too sure I want to exchange my SDL for GDG.

 

[forbesaw]

I have both shares in sundancer and gindalbie metals. What does this mean in regards to holding sundancer shares

 

[nikki]

for sdl it gives it access to the GBG's main chinese partner although i assume that the joint venture is linked to one mine only. gbg has a number of major shareholders who might invest more into the current sdl projects. for gbg they get talbot and all the fantastic investors supporting sdl. more importantly, i assume this takes the gbg/sdl into the asx 200 with that kind of market capitalisation. this will put it on par with mgx/fmg/mmx. although the iron ore price negotiations are mainly driven by bhp and rio i suspect the benefits for sdl will be greater and sooner because gbg is closer to production and will benefit more from the price rise in iron ore from october.

i do not hold gbg but given this merger i would be more interested in buying some because of the value i place on sdl and its mine in cameroon. so, i think this is good for everyone.

i think we will see some bigger dumps of gbg tommorrow before prices begin to stabalise a little. it seems that 0.8 for sdl is great value at the moment.

 

[tony montana]

So whats the deal here, they want us to pay a $1.70 for gbg shares even though sdl were 74c can some pls clarify this for me.....nebby everywhere you go.

 

[the barry]

So whats the deal here, they want us to pay a $1.70 for gbg shares even though sdl were 74c can some pls clarify this for me.....nebby everywhere you go.

Your having a lend right?

You get 1 GBG share for every 2 SDL shares that you own under the proposed merger.

 

[the barry]

The benfits are going to be fantastic for both companies.

Through merging the companies they will boast a diversified product range with outstanding projects in the new companies portfolio. We are yet to get confirmation on the total resource size of the Cameroon and Lodestone projects. They could be massive

There will also be a substantial market cap which will allow for growth and project funding. GBG will be producing first which brings in cash flow which will add stability to SDL taking it from explorer to producer and will add to the chance that the Cameroon project will produce.

These are extremely exciting days for both companies and will pave the way for the new company to become a major player in the iron ore market into the next decade.

 

[greenfs]

I look forward to congratulations from other subscribers for my post made under GBG on 17/09/2007 suggesting that a merger with SDL was on the cards. This was not insider info. Sometimes 1+1=2.

 

[michael_selway]

I look forward to congratulations from other subscribers for my post made under GBG on 17/09/2007 suggesting that a merger with SDL was on the cards. This was not insider info. Sometimes 1+1=2.

DO you reckon MIS, is a likely M & A target?

Earnings and Dividends Forecast (cents per share)
2006 2007 2008 2009
EPS 1.2 1.2 8.3 17.8
DPS 0.0 0.0 1.0 14.5

thx

MS

 

[tony montana]

Your having a lend right?

You get 1 GBG share for every 2 SDL shares that you own under the proposed merger.

what we just get them given to us for just holding sdl?
i suppose i should just read the 51 page announcement.

 

[dj_420]

what we just get them given to us for just holding sdl?
i suppose i should just read the 51 page announcement.

GBG and SDL are merging together, so they will form one company, not two... one.

for every two SDL shares you hold you be given one GBG. so if you have 10 000 SDL, you will now have 5000 GBG.

perhaps you should read the ann to get a better understanding of what is happening.

anyways i had mixed emotions on how i felt about it, first i thought GBG have paid to much, then i read a bit more about SDL and provided that the new company can prove up some massive resources then it will only add value in the long run.

it would be good if GBG had merged with a company closer to production, but the production starting next year at karara will get cash flow happening for development of magnetite resource and SDL's resources in africa.

 

[Risky Trader]

Reading the proposal..

It sounds like the merger is pretty much a done deal, given that Jones is on both company board.

The only real mystery left is, How much Big investor willing to pour into this new giant company....

Exciting times ahead?, well.. I reckon SDL holders should fasten their seat belt and enjoy the ride ahead..

**Coninue Tony montana quote
first you get the money!! then you get the power!!!
After you got money!! get your women
After you got your women! get yourself a damn good lawyer

**Cause you going to need it! hahahaha

 

[dj_420]

Reading the proposal..
Exciting times ahead?, well.. I reckon SDL holders should fasten their seat belt and enjoy the ride ahead..

in that case shouldnt both SDL and GBG holders be fastening seatbelts for the ride? lol

from todays action if the merger goes ahead, GBG closed at 1.635 which divided by 2 gives 0.8175, SDL closed at 80.5, so for the meantime SDL shares are tracking slightly behind or they are a little cheaper entry into the SDL/GBG merger.

the thing is now they should track each other share price very closely, so if SDL goes up 10% to 90 cents then GBG would be worth 1.80 and sp should reflect that.

anyone wanting to get in should be watching both companies closely and a sell off or downturn could mean a cheaper entry into the new iron ore giant.

 

[sleeper88]

Just wondering, if SDL are to release drilling results and they turn out to be spectacular, would this still be reflected in the SP or not, since its now tracked to GBG's SP?