Total Resources, the parent company of Total Energold (TSE), recently launched a bid to acquire all the shares it does not already own for $1.55 per share. Total Resources, which in turn is a wholly owned subsidiary of Total S.A. of France, currently owns about 71% of Total Energold’s outstanding shares.
An independent committee of directors will appoint advisers to assist in reviewing the proposal made by Total Resources.
At the end of 1990, Total Energold had assets of $247.5 million and liabilities of $146.6 million. Based on the company’s 35.7 million shares outstanding at the end of 1990, Energold’s book value is about $2.80 per share.
The offer compares well with the past 12-month trading range of the issue, from a low of $1 to a high of $1.50, although it did trade as high as $3 in 1990.
Total Energold’s principal operating subsidiaries are its 51% owned Plexus Resources (TSE) and the 55.3% owned Ranchmens Resources (TSE). Operating earnings from mining operations in the U.S. (essentially generated by the company’s interest in Plexus which owns a 24% interest in the Denton-Rawhide heap leach gold mine in Nevada) were about $886,000 in 1990. The interest in Ranchmens generated over $25.9 million in operating earnings during the year. Total Energold’s cash flow after interest charges, taxes and exploration, was $11.2 million or about 31 cents per share for 1990.
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