Sprott Inc (SII.TO) announced a buyout offer of SILU. Each share of SILU would be exchanged for 1/2 share of Sprott Inc plus C$0.15. Sprott Inc is selling for about $3.20, so 1/2 share is $1.60. Add $0.15 and it is $1.75. This is of course $0.30 above $1.45, about 20%. Of course these prices will change, and there is no guarantee, but right now buying SILU in anticipation of the buyout looks profitable to me. The buyout is expected to close in early July 2013 if 2/3 of SILU voting shares approve. It looks like voting shares of Sprott Inc have already approved the buyout. If you buy SILU now I think you will get a $0.015 dividend before the buyout. To read the official details of the buyout offer look up the stock SII.TO .
The details of the buyout say that extra shares of SII.TO will be issued for the deal, causing a 39% increase of the outstanding shares. Too much dilution will bring down the price. I noticed Rick Rule has about 20 million shares; nice for him.
That increase in shares is not dilutive because it is offset by the value of the SILU company that is added. 39% of $520 million (Sprott Inc enterprise value) is $203 million. This corresponds closely to the enterprise value of SILU.
SII expensive? At 5% of AUM or 4% after cash it seems as cheep as it gets, book quadrupled since 2008; Only minor growth in assets would translate into single-digit PE... These are markets i.e. people and I suppose it could trade anywhere, but looks awfully cheap to me :) Good luck and best wishes.