There were a number of big gainers last week, led by two companies that were bought out.
Radiant Systems (RADS) rose 32% after it agreed to be acquired. NCR Corporation (NCR) and the company announced a definitive agreement for NCR to acquire Radiant Systems, a provider of multichannel point-of-sale and managed hosted service solutions to the hospitality and specialty retail markets, through a cash tender offer of $28.00 per Radiant Systems share. The equity purchase price of $1.2 billion has been approved by the boards of directors of each company. NCR and Radiant Systems currently anticipate the transaction will close during the third quarter of 2011, subject to regulatory approval. The acquisition will be financed through a combination of new debt and existing balance sheet cash. NCR will raise approximately $1.1 billion of new funded debt to finance the transaction.
Petrohawk Energy (HK) jumped 55% after BHP Billiton (BHP) agreed to acquire the company. The companies entered into a definitive agreement for BHP Billiton to acquire Petrohawk for $38.75 per share by means of an all-cash tender offer for all of the issued and outstanding shares of Petrohawk, representing a total equity value of approximately $12.1 billion and a total enterprise value of approximately $15.1 billion, including the assumption of net debt. The Petrohawk board of directors has unanimously recommended to Petrohawk shareholders that they accept the offer.
The transaction would provide BHP Billiton with operated positions in the three world class resource plays of the Eagle Ford and Haynesville shales, and the Permian Basin. Petrohawk’s assets cover approximately 1,000,000 net acres in Texas and Louisiana, with estimated 2011 net production of approximately 950 million cubic feet equivalent per day (MMcfe/d), or 158 thousand barrels of oil equivalent per day (Mboe/d). At year-end 2010, Petrohawk reported proved reserves of 3.4 trillion cubic feet of natural gas equivalent (Tcfe). The company has a current non-proved resources base of 32 Tcfe for a total risked resource base of 35 Tcfe. Petrohawk reported gross assets of $8.2 billion as at 31 March 2011 and $390 million of profit before tax for the year ended 31 December 2010.
Lentuo International (LAS) rallied more than 70% after it provided FY11 guidance and agreed to acquire an Audi dealership. The company said that in 2011, it expects to generate total revenue of RMB 3.5 billion to 4.0 billion, or $541 million to $618 million. The analyst forecast was for $537 million.
The company also announced that it signed a binding Letter of Intent to acquire a controlling interest in an Audi dealership in Zhejiang Province, People's Republic of China. The dealership sold 1,800 vehicles and generated RMB 800 million ($124 million) in revenue during 2010. The company expects the dealership to contribute approximately RMB 200 million ($31 million) in revenue to Lentuo for the fourth quarter ending December 31, 2011, and approximately RMB 1 billion ($154 million) in revenues to Lentuo for 2012.
Midway Gold Corporation (MDW) climbed 31% after reporting deposits in its Spring Valley Project in Nevada. Highlights include metallic screen assays with gold intercepts of 166 meters of 1.48 grams per tonne (gpt) gold, including 23 meters of 2.15 gpt gold in SV10-510, and 218 meters of 2.7 gpt gold including 41 meters of 12.3 gpt in SV10-511c.
The 2011 drilling program commenced in early April, and two RC rigs and one core rig are currently operating. The 2011 drill plan is focused on expanding the resource and evaluating property acquired near the end of 2010 south of the current resource area. In addition to drilling, cultural and biological surveys, hydrogeologic studies and trace element analyses are underway to support future permit applications.
Gulf Resources (GURE) rose 26% after the company reaffirmed its corporate structure and the chairman’s intention to maintain his ownership of stock. Ming Yang and his family will hold shares of the company for the next three years and confirmed that Gulf Resources maintains 100% ownership of its two PRC subsidiaries, Shouguang City Haoyuan Chemical and Shouguang Yuxin Chemical Industry. The company's chairman, Mr. Yang and his family, together own 13,391,453 shares, which is approximately 38.7% of the company's total outstanding shares of common stock. In a letter to shareholders, Yang and his family have declared that they are very confident in the company's future and will not pledge or sell any of their shares in the next three years.
The company further added that its corporate structure remains linear and unchanged since February 2007 and the company maintains full control over its operating subsidiaries.