The sharp rise in platinum and other PGMs does give PLA alternatives. PLA could start up again itself quite profitably and no doubt PLA has had interest from other third parties in the assets. But PLA management have lost all credibility so the merger/takeover is a way out.
If per my guess the deal is swap 1 JLP share for 3 PLA shares there will be a lot of complaining by PLA shareholders about crystallizing an almost complete wipeout of hundreds of millions in invested capital and shareholder value (and anything worse than 1-3 would probably be voted down by PLA shareholders).
If the deal is 1-1 then JLP shareholders will complain about paying too much and too much dilution.
Somewhere in the middle would be fair but I am expecting 'unfair' in that JLP will be the clear winner and PLA shareholders the losers hence guess of a 1-3 share ratio.
alternatives, page-5
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