TransGlobe Energy Corp fka TGA

[UIC Jeff]

TGA and Caracal Energy (CRCL/CCAXF) to Merge.

TGA shareholders to get 1.23 shares in the new company for each current TGA Share.

Caracal Energy trades on the London stock exchange as CRCL, Pink sheet equivalent is CCAXF. Friday's close was 410 pence(GBX)=4.10 pounds(GBP) or 6.82 USD

IF the transaction is simply accretive.
CRSL Mkt Cap=601.32M GBX =~ 999.87 M USD
TGA Mkt Cap=568.46 M USD
999.87+586.46=1,586.33 M USD
The merged company will have approximately 238,503,645 shares issued and outstanding prior to adjusting for conversion of Caracal's outstanding convertible debentures.

1,586,330,000/238,503,645=6.51 new Share price

6.51*1.23=8.01 to TGA shareholders IF the market does not price it down due to the new company being fully exposed in Chad, Egypt, and Yemen.

So far I see this as Ross cashing out, retiring as CEO and moving to a board position. TGA shareholder's get a very small current premium (~50 cents), I could be wrong though.

Thoughts?
Jeff

Links:
Newswire Story

Merger presentation