Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>After <a href="https://www.smartkarma.com/entities/perseus-mining-ltd" target="_blank" data-smartkarma-citation="entities:15306:1" rel="noopener">Perseus (PRU AU)</a> announced it had secured Tanzanian Fair Competition Commission  approval, <a href="https://www.smartkarma.com/entities/orecorp-ltd" target="_blank" data-smartkarma-citation="entities:8120:1" rel="noopener">Orecorp (ORR AU)</a> continued to sit on its hands as, technically, <a href="https://www.smartkarma.com/entities/silvercorp-metals-inc" target="_blank" data-smartkarma-citation="entities:25818:1" rel="noopener">Silvercorp (SVM CN)</a> terms were superior. </li>
<li>PRU added 2% overnight bringing its stake to 22% vs SVM's 21%. SVM said they won't extend beyond the 22nd March. Something had to give. </li>
<li>This morning, PRU bumped its all-cash Offer to A$0.575/share (from A$0.55/share), with 15.6% of shares out intending to accept. SVM have five business days to counter. </li>
</ul>


After Perseus (PRU AU) announced it had secured Tanzanian Fair Competition Commission  approval, Orecorp (ORR AU) continued to sit on its hands as, technically, Silvercorp (SVM CN) terms were superior. 
PRU added 2% overnight bringing its stake to 22% vs SVM's 21%. SVM said they won't extend beyond the 22nd March. Something had to give. 
This morning, PRU bumped its all-cash Offer to A$0.575/share (from A$0.55/share), with 15.6% of shares out intending to accept. SVM have five business days to counter. 


<ul>
<li>Back in August, <a href="https://www.smartkarma.com/entities/silvercorp-metals-inc" target="_blank" data-smartkarma-citation="entities:25818:1" rel="noopener">Silvercorp  (SVM CN)</a> bid A$0.15/share and 0.967 scrip for <a href="https://www.smartkarma.com/entities/orecorp-ltd" target="_blank" data-smartkarma-citation="entities:8120:1" rel="noopener">Orecorp (ORR AU)</a>; and secured board support after bumping the cash portion to A$0.19/share via an Off-market Offer.</li>
<li>
<a href="https://www.smartkarma.com/entities/perseus-mining-ltd" target="_blank" data-smartkarma-citation="entities:15306:1" rel="noopener">Perseus Mining (PRU AU)</a> countered on the 22 January with a A$0.55/share Offer, which was rejected by Orecorp, ostensibly over concerns Perseus had not secured Tanzanian Fair Competition Commission approval.</li>
<li>That regulatory approval has now been satisfied. The Offers for both Perseus and Silvercorp are conditional on 50.1% acceptance hurdles. I think Perseus' all-cash Offer is superior.</li>
</ul>


Back in August, Silvercorp  (SVM CN) bid A$0.15/share and 0.967 scrip for Orecorp (ORR AU); and secured board support after bumping the cash portion to A$0.19/share via an Off-market Offer.

Perseus Mining (PRU AU) countered on the 22 January with a A$0.55/share Offer, which was rejected by Orecorp, ostensibly over concerns Perseus had not secured Tanzanian Fair Competition Commission approval.
That regulatory approval has now been satisfied. The Offers for both Perseus and Silvercorp are conditional on 50.1% acceptance hurdles. I think Perseus' all-cash Offer is superior.


IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/perseus-mining-ltd" target="_blank" data-smartkarma-citation="entities:15306:1" rel="noopener">Perseus Mining (PRU AU)</a>’s competing all-cash takeover offer for <a href="https://www.smartkarma.com/entities/orecorp-ltd" target="_blank" data-smartkarma-citation="entities:8120:1" rel="noopener">Orecorp Ltd (ORR AU)</a> is A$0.55, a 4.0% premium to the implied value of the <a href="https://www.smartkarma.com/entities/silvercorp-metals-inc" target="_blank" data-smartkarma-citation="entities:25818:1" rel="noopener">Silvercorp Metals (SVM CN)</a> off-market takeover offer. </li>
<li>The Board opines that the PRU offer is not superior. Since announcing the revised SVM scheme on 23 November, the PRU offer has averaged 3.0% lower than the SVM offer.</li>
<li>The SVM offer, which closes on 23 February, has struggled to gain traction. PRU has the balance sheet to sweeten its offer and gain shareholder traction.   </li>
</ul>



Perseus Mining (PRU AU)’s competing all-cash takeover offer for Orecorp Ltd (ORR AU) is A$0.55, a 4.0% premium to the implied value of the Silvercorp Metals (SVM CN) off-market takeover offer. 
The Board opines that the PRU offer is not superior. Since announcing the revised SVM scheme on 23 November, the PRU offer has averaged 3.0% lower than the SVM offer.
The SVM offer, which closes on 23 February, has struggled to gain traction. PRU has the balance sheet to sweeten its offer and gain shareholder traction.   


OreCorp (ORR AU): Perseus Rivals Silvercorp with an All-Cash Takeover Offer

<ul>
<li>In <a href="https://skr.ma/r5nJS" target="_blank" rel="noopener">OreCorp: Silvercorp Switches To Off-Market Bid</a>, after <a href="https://www.smartkarma.com/entities/silvercorp-metals-inc" target="_blank" data-smartkarma-citation="entities:25818:1" rel="noopener">Silvercorp Metals (SVM CN)</a> switched to an off-market Offer for <a href="https://www.smartkarma.com/entities/orecorp-ltd" target="_blank" data-smartkarma-citation="entities:8120:1" rel="noopener">Orecorp Ltd (ORR AU)</a>, I expected <a href="https://www.smartkarma.com/entities/perseus-mining-ltd" target="_blank" data-smartkarma-citation="entities:15306:1" rel="noopener">Perseus Mining (PRU AU)</a> to counter. </li>
<li>Orecorp announced this morning Perseus (with 19.9% of shares out) has pitched an all-cash Offer of A$0.55/share, primarily conditional on getting to 50.1%</li>
<li>Orecorp has responded by saying Perseus Offer is not superior to Silvercorp cash/scrip terms. Perhaps it's Orecorp's way of (temporarily) skirting the break fee and letting the market decide.</li>
</ul>


In OreCorp: Silvercorp Switches To Off-Market Bid, after Silvercorp Metals (SVM CN) switched to an off-market Offer for Orecorp Ltd (ORR AU), I expected Perseus Mining (PRU AU) to counter. 
Orecorp announced this morning Perseus (with 19.9% of shares out) has pitched an all-cash Offer of A$0.55/share, primarily conditional on getting to 50.1%
Orecorp has responded by saying Perseus Offer is not superior to Silvercorp cash/scrip terms. Perhaps it's Orecorp's way of (temporarily) skirting the break fee and letting the market decide.


Trading At Terms As Orecorp Rebuffs Perseus' All-Cash Bid

<ul>
<li>On the 27 Dec, to circumvent <a href="https://www.smartkarma.com/entities/perseus-mining-ltd" target="_blank" data-smartkarma-citation="entities:15306:1" rel="noopener">Perseus (PRU AU)</a>'s 19.9% dissenting vote, <a href="https://www.smartkarma.com/entities/orecorp-ltd" target="_blank" data-smartkarma-citation="entities:8120:1" rel="noopener">Orecorp (ORR AU)</a> and <a href="https://www.smartkarma.com/entities/silvercorp-metals-inc" target="_blank" data-smartkarma-citation="entities:25818:1" rel="noopener">Silvercorp (SVM CN)</a> agreed to an off-market takeover, on the same terms. </li>
<li>That Offer - A$0.19 in cash and 0.0967 new Silvercorp shares - opened on the 3 January.</li>
<li>Silvercorp paid ~A$0.51/share, on-market, just prior to the Offer. OreCorp is currently trading ~A$0.51-$0.52/share. Is there any legal obligation to set a minimum floor price of A$0.51/share?</li>
</ul>


On the 27 Dec, to circumvent Perseus (PRU AU)'s 19.9% dissenting vote, Orecorp (ORR AU) and Silvercorp (SVM CN) agreed to an off-market takeover, on the same terms. 
That Offer - A$0.19 in cash and 0.0967 new Silvercorp shares - opened on the 3 January.
Silvercorp paid ~A$0.51/share, on-market, just prior to the Offer. OreCorp is currently trading ~A$0.51-$0.52/share. Is there any legal obligation to set a minimum floor price of A$0.51/share?


OreCorp (ORR AU): Musings On The Minimum Bid Price

Australia

OreCorp Limited is a mineral resource exploration company. The company acquires, explores and develops properties for gold, nickel, copper and other base metal deposits.

Orecorp Ltd (ORR AU)

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Orecorp Should Now Back Perseus' Offer

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OreCorp (ORR AU): Perseus Rivals Silvercorp with an All-Cash Takeover Offer

The shares are trading slightly above the PRU offer, which is not considered superior to SVM's. PRU has the balance sheet to sweeten its offer and...

Arun George

Trading At Terms As Orecorp Rebuffs Perseus' All-Cash Bid

If in, stay in. You have an effective floor of A$0.55/share. If small arbs are your thing, you might look to add Ocecocp on any weakness. I'd be...

David Blennerhassett

OreCorp (ORR AU): Musings On The Minimum Bid Price

Silvercorp paid ~A$0.51/share, on-market, just prior to the Offer. OreCorp is currently trading ~A$0.51-$0.52/share. Is there any legal obligation...

David Blennerhassett