When Eike Batista announced his takeover bid for Galway Resources (delisted), we made a calculation of how much the deal was actually worth in the blogpost of October 22nd.
Back then we did a back of the envelope calculation of the value of the parts and we came up with a total valuation of C$2.53.
At yesterday’s closing prices of Galway Gold (GLW.V) at 41 cents and Galway Metals (GWM.V) at 4.5 cents, the total value of both spinoffs per previously held Galway Resources share is approximately 42 cents. If you add the cash payment of C$2.05, the total valuation is now C$2.47 per previously held Galway Resources share. As this sum of the parts is very close to our earlier calculated target price of C$2.53, we would take everything off the table and sell both Galway Metals and Galway Gold and consider this trade finished.
Disclosure: The author holds no position. Please see our disclaimer for current positions.
