Osisko Gold Royalties Limited announces acquisition with Virginia Mines Inc. This particular deal helps in creating new intermediate royalty company while having gold royalty assets. It was originally priced around $479 million. Existing investors mostly contributed in the funding transactions in an overall manner (Albrecht, Stice & Stice, 2011). Osisko Gold Royalties and Virginia Mines Inc. have announced and successfully completed plans for various arrangements for the same. As far as Osisko is concerned, they have acquired issues as well as outstanding common shares of Virginia. Shareholders of Virginia receive shares in the ratio 0.92 from Osisko and common shares in respect to Virginia’s common shares in an overall manner. Osisko Gold Royalties Limited shows interest shares especially from Toronto Stock Exchange. It mainly submits application for reporting on an issuer and terminates with the public reporting requirements in an overall manner. Common shares of Osisko require arrangement for listed exchanges on 17th February 2015 (Berry, 2011). Osisko declares various obligations for revising the forward-looking statements in the near future. Addition to that, Osisko Gold Royalties Limited buys Virginia Mines Limited amounting to $461 million. It combines with the two companies and derives income from various royalties especially from gold mines in Quebec. Values of each share of Virginia Mines Limited arrive at about $14.19 and closes for both the related companies
On page 1, the “value-gap” is two-fold. It signifies an under-valuation of Seagate’s core disk drive operating assets due to unfavorable public market investor preferences. Furthermore, the value of the Veritas share price has caused the Veritas stake to far outweigh the value of Seagate’s stand-alone market capitalization. Since Seagate does not own at least 80% of the voting stock in Veritas, distributing the wealth intrinsic in that stake to Seagate shareholders would prove difficult due to the hefty corporate tax rate of 34% that would erode its full-value. From a sum of the parts perspective, it seems
“None can say except approximately; for the ten percent royalty imposed by the Canadian government.” This quote relates to the stricter laws of what the miners had to go through, but later in the article it mention that all minder if they wanted to mine must have a license, pay ten dollars, and if they want the claim they would have to have gone to the records office. The article shows the many rules and regulations on what the miners would have to do in order to collect
Each company blindly went into negotiations assuming their senior negotiators would be their best negotiators without taking into account the differences in personalities and culture. Sakari’s lead negotiator and vice-president, Kuusisto should have mitigated these concerns with the opposing Sakari management prior to the initial meetings. If these concerns were outlined with relevant solutions, then the potential of opposition of the deal would have been lessened. Items of Disagreements by both parties Equity ownership Both Nora and Sakari agreed to an initial investment of RM5 million to form the JV but disagreed on the equity share proposed by each side (273). Sakari proposed a 49 -51 percent split between itself and Nora to control the JV, however Nora countered with a 70-30 split between itself and Sakari based on the historical foreign equity regulation set by the Malaysian government. These negotiations were taken place in 2003; approximately 5 years after the Malaysian government adopted new regulations that did not employ these percentages any longer. Despite the new regulations, Nora appeared very inflexible. Each company had significant long-term equity ownership concerns which could have been mitigated if Nora would have negotiated further. Technology transfer Sakari wanted to protect their intellectual property (IP)
Billy’s Beats Inc., an SEC registrant, is a new audit client with a fiscal year-end of December 31, 2010. Billy’s is a manufacturer of musical instruments. Billy’s acquired Little Drummer Boy Inc. in 2010 for $575 million in cash. Significant assets acquired included property, plant, and equipment totaling $865 million and other assets totaling $145 million. The useful lives assigned to the property, plant, and equipment acquired were 30 years for the plant and 15 years for the equipment. The useful lives for the plant and equipment already owned by Billy’s are 20 years and 10 years. Other included assets of acquired customer lists, were
Cadia Holdings Pty Ltd and Newcrest Operations Ltd (NOL) owned land in New South Wales, granted to them by the State of New South Wales under the Mining Act 1992 (NSW). From July 1998 to March 2008, Cadia conducted mining operations in which it recovered minerals including copper and gold, and paid royalties to the Minister pursuant to the Mining Act 1992 (NSW). The Minister referred to the Case of Mines[1], claiming that the mine owned by Cadia was a “royal mine” containing gold that belonged to the Crown prerogative, and as a consequence the copper was also the property of the Crown. Cadia
According to our calculations Cooper Copper has an optimum bargaining position because they can offer up to $60.13 (at a 4% growth estimated rate) for it’s the stock in order to acquire the majority its shares. Porter 's offer of $42.00 per share failed to get the majority of shares need to acquire control. VLN 's offered to honor the price of $53.10 for preferred shares. This is the share value that speculators and stockholders would hope to obtain although the actual offer could end up to be much less. According to our calculations and analysis the best possible offer Copper can offer up to $60.13 (at a 4% growth estimated rate) per share for Nicholson stock.
| (TCO C) Presented below is information related to Bruce Van Company. Retained earnings, December 31, 2010
5. Newmont Mining Company can be linked with balance sheet number three. First clues is the number for PPE, 62, 6 % of total assets, which represents all the heavily machinery for mine excavation. The level of inventory suits best for this company when we take into
Gascoyne Gold has been formed with 7 shareholders, which they have invested more than $1 million, setting up a state of the art processing and packaging facility. Before they have
Thank you for taking the time to meet with us.During our meeting, you stated that you (Stephen) are planning to purchase your co-owner’s (Rob Wilco) shares of Wiki Art Gallery, Inc. (WAG). As a private company, WAG’s shares do not have a readily available market price. However, you and Rob have agreed on calculating the buy-out price using the “earning multiplier” equal to five times the GAAP based net income for the year ended September 30, 2011.You stated that you would like an opinion regarding the 2011 financial information as it has not been audited. You would like to know whether WAG’s fiscal 2011net income fairly reports
To create a competitive advantage, a mine has to properly manage its exposure to gold price fluctuations. This is not an easy thing to do since there are so many factors to consider: when, how much, and how to hedge the gold production. Firms in this industry differentiate themselves based on the risk management strategies they implement. Furthermore, mines should also be able to minimize the cost of gold production along with making large sunk costs. Operating in
Based on the given information in the case study regarding the acquisition of Nicholson File Company by Cooper Industries, there is no question that Cooper should try to gain control of Nicholson. This decision is based on an analysis of the bargaining positions of each group of Nicholson stockholders which have disparate goals and needs that need to be met. In addition, an appropriate payment method and specific dollar value based on a competitor's offer and Cooper financial data was decided. The remainder of this paper will provide the analysis and rationale for this determination.
Rio Tinto is a multinational company that deals with mineral and metal mining, refining, processing, and marketing. Founded in 1873, this Australian-British company has grown into one of world’s leading mining and Metals Company, dealing in aluminium, copper, diamonds, coal, and iron ore. Refining of bauxite and iron ore are also part of its operations. The transformed metals and minerals give Rio Tinto access to markets across a diverse economic development spectrum, and exposure in varied sectors, including
8. Using the exchange ratio (Brahma: Antarctica) of 0.096:1, which implied R$61.20 per share, the deal is dilutive both on historical basis and on future basis (from 2000 to 2004). The synergies that are necessary to make the
Baosteel and Posco : Each company agreedto invest US125 million to acquire a stake in the other, with this stake being less than 0,5 %