SDL - Sundance Resources

[AussiePaul72]

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.

I agree entirely DJ ......i just posted on GBG and this was my point ....although i think you explained it much better!!
IMHO I think we will see both GBG & SDL SP track relatively closely in the 1:2 ratio for this very reason. I think if we see an announcement from one company (eg. drilling results) and a corresponding movement in SP, this movement will be reflected & tracked fairly closely by the other in that 1:2 ratio. Also I think that any movement in SP due to announcements will most likely be diluted due to buying/selling in both SDL & GBG as a result. Makes sense to me, do others agree?

 

[tony montana]

so without causing to much trouble in the ramping department what would you say the stock price could get too ? i am reading skys the limit and wild ride.....but i havent read anything about stock prices for the future

 

[dj_420]

so without causing to much trouble in the ramping department what would you say the stock price could get too ? i am reading skys the limit and wild ride.....but i havent read anything about stock prices for the future

should be some broker valuations coming on this one soon, the merger will enter GBG into the ASX200 so the exposure to insto's and super funds will be that much greater.

apart from that it would be difficult to call right now, we need BFS on SDL current resource to get a better idea of the bigger picture.

 

[dj_420]

I agree entirely DJ ......i just posted on GBG and this was my point ....although i think you explained it much better!!
IMHO I think we will see both GBG & SDL SP track relatively closely in the 1:2 ratio for this very reason. I think if we see an announcement from one company (eg. drilling results) and a corresponding movement in SP, this movement will be reflected & tracked fairly closely by the other in that 1:2 ratio. Also I think that any movement in SP due to announcements will most likely be diluted due to buying/selling in both SDL & GBG as a result. Makes sense to me, do others agree?

yes shares will track each other at the 1:2 ratio from here on, expect either GBG or SDL to be bought up or sold down when there is a difference in that ratio.

for now we just have to wait and watch market finish worrying about which side gets the better deal and realise both companies are now going to form a rather formidable force in iron ore.

 

[EZZA]

so wheres the value sdl or gbg, currently holding gbg.

hope gbg holders didn't get short end of the stick. as where going down as ur going up, any input guys? bit confused.

 

[debaron]

yes shares will track each other at the 1:2 ratio from here on, expect either GBG or SDL to be bought up or sold down when there is a difference in that ratio.

for now we just have to wait and watch market finish worrying about which side gets the better deal and realise both companies are now going to form a rather formidable force in iron ore.

Sorry nooby question here. How do the shares track at the 1:2 ratio? Are those driven by the everyday volume of the regular investors?
Also, I read alot of people saying this will be a new giant iron ore company etc, does that mean that it has changed into a potential long investment for investors? How will the sp go down in the short term?

 

[doctorj]

Sorry nooby question here. How do the shares track at the 1:2 ratio?

People on the look out for arbitrage opportunities will keep them approximately in line with the ratio.

Say you have 100,000 SDL FPOs, love the story and are happy to take shares in the combined entity. Under the arrangement, you'd get 50,000 GBG shares, but you notice the GBG share price fall such that after transaction costs, you could sell your SDL now and buy GBG to get, say 55,000 GBG shares.

Ofcourse, you've got a motive to take the transaction and doing so will put a downward pressure on SDL shares and an upward pressure on GBG. Others will do the same until they reach equalibrium (or approximate equalibrium, because transaction costs need to be factored in).

 

[Risky Trader]

Long term thinking..

regarding who will get the short end of the stick? we shouldn't worry too much.. if you are long term holder.. unless you are doing short trade..

Why?

The strategic merger is good for both companies..

GBG coming to production shortly, will generate good profit = capital for reinvestment.. in this case SDL

Problem is GBG have smaller potential compare to SDL .. meaning roughly 20 years of production life with smaller output

In the other hand SDL have richer profile and seem to be longer production life .. 30 years I think and higher output. BUT SDL need capital NOW if they are going to complete the port and rail infrastructure in time for 2011. finger cross no bloody war happening next few years.

if you stand together the stronger you are

Which mean both stood to gain from each other and also ensure their bargaining power and production life for a little longer. AND if all goes to plan ,in 5 years when both on full speed... They will have enormous funds to explore and buy smaller miners... Then again that's exactly what BHP RIO and FMG will be doing too.

Question is, How much is enough for you? Greed is the seed of all downfall

 

[jack06]

To be a pain, still not sure how this will work. If you get 1 GBG for every 2 SDL and the two companie's become one, what happens to the shares you hold in each respective company?

 

[springhill]

To be a pain, still not sure how this will work. If you get 1 GBG for every 2 SDL and the two companie's become one, what happens to the shares you hold in each respective company?

If u hold only SDL u will be given half the number of those shares in the GBG/SDL merged company, probably to be renamed. For example say they name the company XYZ redsources, if u had 10000 SDL shares u will now have 5000 XYZ shares. If have 10000 GBG shares u will still receive 10000 XYZ shares. This is due to the GBG : SDL 2:1 ratio

 

[Out Too Soon]

I am one of many who have been following GBG for a long time & a part time shareholder. Now waiting for the noise & exuberance to quieten down once again so then I'll get back on. Gindalbie is going to be huge & very profitable but patience is the word.
Lucky SDL holders have got the good end of this deal if it gos through as SDL was iffy on infrastructure whereas GBG is the "Full Monty".

 

[springhill]

I am one of many who have been following GBG for a long time & a part time shareholder. Now waiting for the noise & exuberance to quieten down once again so then I'll get back on. Gindalbie is going to be huge & very profitable but patience is the word.
Lucky SDL holders have got the good end of this deal if it gos through as SDL was iffy on infrastructure whereas GBG is the "Full Monty".

Just to counter that, the way the WA state Govt is handling this Midwest rail line scenario, GBGs transport issues seem a bit 'iffy' to me aswell OTS. Dont count your chickens when it comes to McTiernan, they are piss weak when it comes to decision making, speaking as a native.
Is it that hard to say get your **** together boys, build the thing in unison, with the HELP OF THE GOVT seeing as they will pull in billions in royalties! Make access available to all potential clients in the area
As for SDL shareholders being lucky, mate, they will outnumber GBG holders and you needed them just as much as they needed you, or GBG would never agree to the merger. Unless they agreed to it out of the kindness of their hearts

 

[Fab]

Just to counter that, the way the WA state Govt is handling this Midwest rail line scenario, GBGs transport issues seem a bit 'iffy' to me aswell OTS. Dont count your chickens when it comes to McTiernan, they are piss weak when it comes to decision making, speaking as a native.
Is it that hard to say get your **** together boys, build the thing in unison, with the HELP OF THE GOVT seeing as they will pull in billions in royalties! Make access available to all potential clients in the area
As for SDL shareholders being lucky, mate, they will outnumber GBG holders and you needed them just as much as they needed you, or GBG would never agree to the merger. Unless they agreed to it out of the kindness of their hearts

Both share price are goind down at the moment. My worry is about tax implication if oblige to sell SDL and then buy back into GBG through the merger. That might make the deal less interesting to SDL share holders

 

[Djayness]

What? no both gbg and sdl are going up at the moment, any word on when sdl shareholders will no longer be sdl shareholders? ie, when is it actually merging into one?

 

[dj_420]

What? no both gbg and sdl are going up at the moment, any word on when sdl shareholders will no longer be sdl shareholders? ie, when is it actually merging into one?

there is an ann by both companies today, if you read the presentation you will understand what they intend to do and when.

 

[hoppielimp]

Hey Fab,

Don't think CGT will be an issue unless you sell. This is a merger, and under the ato guidelines on CGT for takeovers and mergers, we shud be eligible for a scrip to scrip rollover, since we are not receiving any cash and its a straight 1 gbg for 2 sdl shares.

This is what I understand from the ato guidelines...however I'm not a tax expert so...

 

[tony montana]

hey love zn nice job with the tipping comp....if you read the post before yours saying that you will have sdl you will see that i had already tipped them but because i was new to the forum i didnt qualify this is not a sour grapes message just getting my posts numbers up.

well done

 

[Freeballinginawetsuit]

Lucky SDL holders have got the good end of this deal if it gos through as SDL was iffy on infrastructure whereas GBG is the "Full Monty".

I would second that also OTS .

I regularly traded SDL since May last year, can even remember a few occassions when they didn't even have a trade for most of the day.

FWIW can't help but say that SDL Directors were never too shy in handballing each other shares, by the bucketload, along with pissing shareholders money away on pie in the sky offshore tenements, cash wise Mbalm was probably their cheapest punt, whilst being the CAPEX donkey from hell

 

[Risky Trader]

Not sure what really triggering the frenzy buy last 2 days... but I think the SP 300 listing and the merger news must have caught investors with big fat cheque attention.

 

[adobee]

Damn I bought these two weeks ago before heading overseas on holidays just following the big volumes and expecting some positive news now I sit down first time in two weeks and whoa GBG (which is my other main stock) and SDL are looking at merging....