A new share can be issued to Brillian ....let say....10m shares at $2.5....ERD gets $25m cash to penetrate the growth in the USA
Printable View
A new share can be issued to Brillian ....let say....10m shares at $2.5....ERD gets $25m cash to penetrate the growth in the USA
Fbu did not buy any jack shares at all...just put an offer n walked away....the commerce commission definitely not going to approve the take over of STU due to competition
Seldom these takeovers get accepted at the first place. I guess both the buyer and board know that. With so much bought over by volaris.(doubt they will go back on this),it's going to be an interesting few months before they come with a counter punch!
You’re right, it’s the purchases they have already made that make ( hopefully) this situation and their intention abit more substantial?
The only reason I can see for these purchases is they themselves are concerned at the possibility of another bidder? Why purchase prior to their offer ?
Obviously because you can acquire a potentially blocking stake in case another suiter emerges. But also because you can get them cheaper on-market at that point then after you have made your intentions known and you can hardly lose as I noted in my post #630 above. In this case it has been a great outcome for the acquirer as will be shown on their balance sheet at the next reporting date when their holding is marked to market!
I rechecked the SPH Notices and you are right to query my statement at #630 above.
Brillian acquired the first 4.03m shares on market between 30 May and 16 June at an average $0.718cps. Then a far greater number, 15.994m off market from the vendors who sought the escalation clause, at $1.30cps.
And later pursuant to a subsequent SPH a further 1.173m shares likely on-market at an average $1.286cps.
Interestingly the escalation provision mentioned in the original SPH apparently only applies to a full acquisition and not a partial takeover, so in that regard seems to perhaps incentivise the latter in lieu?
At market close yesterday the share price is $1.37 so a healthy gain for Brillian, just not to the extent I represented given the much smaller number purchased at $0.718cps.
I appreciate the information above, it’s good stuff👊
I’m nervous however my gut feel is there is more in the tank and a revised offer will be forthcoming…
And whatever the outcome it was a very welcome entry, got into this company at $1.40 and $1.30 , and promptly watched $10k slide off the table…
Lost my nerve on this one and just sold the rest at $1.38,