Sure. Can of Corn thinks this:
Timmins (TMM) to buy Capital Gold (CGC) – quick take…~$275mm deal– Hostile, non-binding proposal. All stock – exchange 2.27, 26% premium to 20 day vwap, implying a C$4.50/share value. TMM has 17% of CGC share holders locked up.=> VIEW: apparently Gammon Gold (GAM) had a look at CGC in the last 10-20 months. Additionally, CGC’s B.O.D has not been receptive.– AGI, GAM, BTO & NGD operate assets in the region – this suggests further optionality for a higher bid– TMM would have some of the lowest valued paper of the group, and would probably get trumped in a competitive situation– This acquisition does makes sense for TMM as they have producing gold mines in Sonora State , Mexico – similar to CGC.=> Once we have more info/details (ie. valuation metrics etc.), we will forward
DYODD, dude.