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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| European Gold | EGU | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| 0.00 | 0.00% | 807.50 | 01:00:00 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 807.50 |
| Top Posts |
|---|
Posted at 12/3/2012 08:35 by bangor All my EGU have now been transferred to Eldorado Gold shares on my behalf. This crystallised solid gains since I had held for years. A pity as I wanted them longer term. For the moment I will keep ELD but still don't know much about them. I wonder if there will be enough interest for someone to start a thread? |
Posted at 29/2/2012 21:00 by mcmather EGU shares are still trading over on tsx. 28th (Feb) was initially envisaged to be the last day of trading for EGU shares on tsx. Once they are fully cancelled I suspect that the formal / full transfer (to ELD shares) will take place? |
Posted at 28/2/2012 21:22 by nermil Is anyone seeing ELD shares in their SIPP or ISA? I see my entire EGU holding as £0. With no ELD shares. I'm with TD Waterhouse. The terms of the deal is 0.85 ELD shares for each EGU. I assume there is some delay before we see these? I am going to call TD tomorrow. Just wondering what everyone else sees now. |
Posted at 24/2/2012 20:36 by mcmather Me too nermil. I'm surmising that it will just be your holding in ELD - perhaps with a C$ valuation showing?"The European Goldfields shares will be suspended from trading on AIM as of 7:30 am (GMT) on February 24, 2012, with cancellation and de-listing from AIM expected to occur on February 27, 2012. The last trading day of the European Goldfields shares on the TSX is expected to be on or about February 28, 2012." Highlights of the Transaction Creates the premier high growth, low cost intermediate gold producer with a combined market capitalization of approximately C$10.5 billion Leading growth profile with expected annualized production growth of 30% over the next four years, reaching over 1.5 million ounces of gold production by 2015 Strongly enhances Eldorado's project pipeline with high quality near-term producing projects Ability to finance planned growth opportunities with current balance sheet and strong cash flows from existing production Eldorado's dividend will remain unchanged with enhanced ability for growth as European Goldfields' development projects are built Exceptional re-valuation opportunity driven by compelling valuation, growth potential, transaction rationale and management track record |
Posted at 24/2/2012 16:50 by nermil So now that's complete and EGU is suspended what happens next? I hold in my SIPP, just wondering what I will see next week? |
Posted at 19/12/2011 18:47 by nermil You're not completely wrong kickstart. I think the premium is quite poor as well. On the 1st of December ELD was trading at around C$18.46 while EGU was down around £6.39 on the LSE. On the offer that would have valued EGU shares at around £9.80. That's a few days before the offer was made. There was clearly some leakage going on in the few days prior to the offer as ELD started tracking down and EGU started tracking up. Even at ELD's pre offer share price that's still a significant discount to NAV of 1100p per share of EGU. A semi bad offer for EGU but a very good deal for ELD. I would expect ELD to start ticking back up again as the value of the deal from its own NAV is recognised. Its still a fair bit better than the Qataris however. The problem is credit markets are virtually frozen in the Euro Zone. EGU needed the financing to get to the gold and were hamstrung. The management at EGU may have thought this offer was better than the alternative of going cap in hand to the banks. ELD picks up a bargain. But as that stock moves back up so should EGU. Just not as high and as quickly as I might have hoped. |
Posted at 19/12/2011 16:46 by nermil Investec note on the deal taken from FT Alphaville below. Seems to stack up with my view, ie a tad disappointing all round. Investec don't seem to expect an alternative bid. Sorry its a bit wordy but interesting. ELD has now officially made an offer for ELD, valuing the company at approximately 812p per share. While this appears to be a miserly 6% premium to the closing price, it is a 25% premium to the price when first news of a potential bid came out and a 32% premium to the 30-day VWAP at the time. This is in line with takeover multiples in the sector (although perhaps at the lower end) and is coincidentally exactly the same takeover premium that ELD paid for Sino Gold (SGX.ASX), as mentioned in our previous note. BE The key points surrounding the offer are: n Signed agreement, unanimously recommended by the EGU board n 0.85 ELD shares plus C$0.0001 cash for every EGU share n EGU shareholders will end up with 22% of ELD n Transaction is to be through a court-approved plan of arrangement, requiring approval from at least two-thirds of EGU shareholders. A special meeting is expected to take place in mid-February 2012. n The transaction also requires majority ELD shareholder approval. n There is a break fee of C$75m, or an expense fee of up to C$30m "upon occurrence of certain other termination events". n No mention of a London main board listing, or a London listing at all. BE Investment thesis. As mentioned in our previous note, ELD is not known for unfriendly takeovers and does not like to revise up its own bid. It likes to have a fully recommended offer to bring to shareholders and this is what it has achieved. While EGU is now "in play" we do not see a strong potential for an alternative bid, given that ELD is in our view the natural acquirer of the EGU assets, given its established presence in the region. While the bid can be seen as opportunistic, given that we feel that EGU's share price did not fully reflect the inherent value of the assets, it does also remove a large layer of development risk, given ELD's strong experience in this regard. On our NAV valuation the transaction undervalues the EGU asset. We estimate the 1.0x P/NAV valuation of EGU's portfolio at 1100p. This allshare deal values them at 812p. What the transaction does do for EGU shareholders is give them an existing c.600k Au oz production base, a strong balance sheet and technical expertise to bring the Skouries and Olympias projects to production. The CAD$13.08/share offer is above the $10/share Qatar Holdings paid for a 9.9% stake recently and well above the $9/share the warrants associated with the loan deal were struck at. And from Olivetree...A bit interesting on possible strategy on part of EGU (extending deadline by accepting ELD bid to give them till after New Year for more approaches... European Goldfields Perspective In Friday's note (below) we highlighted the fact that the key to valuing the projects NPVs was to determine an appropriate cost of capital. For example, one could argue that the see-through yield on the Qatari Loans was 14% after adjusting for the dilution implied value of the warrant packages. European Goldfields Perspective In Friday's note (below) we highlighted the fact that the key to valuing the projects NPVs was to determine an appropriate cost of capital. For example, one could argue that the see-through yield on the Qatari Loans was 14% after adjusting for the dilution implied value of the warrant packages. Despite talking of "a number of approaches", it is curious that EGU management have so readily recommended a transaction at only a minimal premium to market and indeed all-stock (which will trade weakly today). This can perhaps be explained by the pressing timeline though remembering that there was a shareholder vote re the proposed Qatari financing pacakge scheduled for 22nd Dec (this Thursday). By agreeing to the Eldorado transaction, management have locked in a transaction shareholders can vote upon (it requires a 66% approval) whilst extending the effective deadline for any interested third parties until the New Year. It is likely therefore that the market prices in some optionality of another bid although we await further details of Blackrock's lock-up agreement. Early indications (from the illiquid EAU AU) are that ELD CN will fall 3.5% as arbs look to hedge the deal. However, we think the longer-term the market should reward ELD for a visibly accretive transaction. |
Posted at 08/12/2011 09:21 by manics I would think so. I'm expecting to get an understanding as soon as next week as to what value Eldorado (or "the suitors") are placing on EGU.Remember, if all this comes to nothing....then Goldman Sachs will take EGU in the state I described above away from the AIM onto mainboard, forcing fund & institutional buy in. So either way EGU will be somewhat higher than it is now come Feb / Mar imo. |
Posted at 08/12/2011 08:59 by manics It isn't.Qatari deal was announced with EGU sub 600p, the deal took it to 700p we are now at 800p. Greek permit awards however carried EGU to £10 earlier this year. EGU feel back because the market didn't think funding would be available. So we are now at 800p; -with full permitting -fully funded -with gold at $1740 -in the midst of a "bidding war" for the company I think EGU has much further to run. |
Posted at 14/9/2011 09:55 by nermil Does anyone have any thoughts on the impact of EGU should Greece leave the Eurozone and go back to the drachma? There would very likely be a devaluation of the drachma after it is re-introduced from the fixed exchange rate set for its move to Euro. Apparantly 345 drachma bought you 1 euro back then. Some costs at EGU will fall if they are 'local' costs. But again since oil is a major input cost a devaluation of the drachma would mean in effect higher oil prices for EGU, wouldn't it? Has anyone done any research into this or have an opinion on what impact such a move could have on EGU? Anyone read anything interesting on the impact of a Greek exit from eurozone on companies operating in Greece? |
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