so what does a bidder pay, I ask myself, and what does his/her investment look like from a ROI ROE point of view ?
Have to pay something like $1.3 b +30% premium to buy = $1.7b investment
Can someone calculate the ROI and NPV on this investment for an incoming bidder?
Then ther'es the CAPEX
Starts to make me think of Robert Friedland and the famous Voisey Bay discovery.
It started out as another game of chicken between penny stock traders and greedy investors. It turned into a $4.3- billion deal designed to protect the future of the world’s largest nickel company. In The Big Score: Robert Friedland, Inco, and the Voisey’s Bay Hustle, journalist Jacquie McNish shows how a one-time LSD peddler acquired the power to make or break the fortunes of small investors and big corporations, and make himself a multi-millionaire (billionaire?) in the process.
In 1993, a couple of East Coast prospectors hit the motherlode in Voisey’s Bay, Labrador, when they discovered a giant nickel deposit. Their initial explorations had been funded by bad-boy Robert Friedland, known to the business and environmental worlds as a man who cared a lot about money but little about mining.
Friedland wasn’t particularly interested in Voisey’s Bay until he realized just how big it was. That’s when the games began. By leaking information bit by bit, by browbeating the people who worked for him, by resorting to tactics like taking off his shoe and banging it on a boardroom table, Friedland got the better of everyone he came in contact with. Mutual fund managers and other rich investors helped drive the price of his stock from $8 to $26 a share. Falconbridge and Inco, Canada’s major mining players, raised the stakes even higher. Inco finally paid the equivalent of $43.50 a share for it. Some say they paid too much.
So in this transaction, Friedland got his loot and rode off into the sunset, and INCO had to spend $x00,m to get the mining approvals, then it was Vales turn as they took over INCO...
and the fun is still going on
Feb 2015...
Vale has won approval from the Newfoundland and Labrador government to export more nickel concentrate from its mine at Voisey's Bay, as a result of delays in commissioning its $4.25 billion processing plant in Long Harbour.
The company will pay $200 million over four years in compensation for the right to export an additional 94,000 tonnes of nickel concentrate from its mine on Labrador's northern coast to its other processing facilities in Ontario and Manitoba. Vale will contribute another $30 million to a community fund.
So the Voiseys Bay cost $9.5++ b to acquire and get going...at least, and who made the real money? and who is going to struggle....
Its noticeable that the NPV and ROI and ROE are missing in the Feas study announcements..., or have I missed something?
Good luck to the take over company...I know where my money would be...
Expand
