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Hi
For the uneducated ones amongst us could someone confirm what will happen if the bid is accepted ?
On the agreed sale date will we just be paid out @ 35p for our shares automatically ?
Will the AA be delisted from the exchange ?
Thanks
Effectively yes, we will receive 35p per share. The PE company will acquire 100% of the issued share capital and , as in the name, the holding will become Private and therefore no longer listed, quoted or traded on the exchange.
The shares will still be in existence, just all in the hands of the private equity company.
What this offer does do is allow anyone interested in making a counter offer the opportunity to gauge exactly what they need to do.
What so everyone will automatically be cashed out at 35p regardless, and given no option to sell / hold ourselves. Is that what yous are saying?
Watkins this is my understanding.
Stage 1 Offer of 35p (which hasn’t happened yet.)
Stage 2 Board has to accept the offer. Again they cant until the offer is solid. They have however implied that they will accept it.
Stage 3 Shareholders (you and I?) have to agree to it BUT they only need a certain % (75?) to agree so could bypass us.
Stage 4 If agreed then shares will be suspended and we eventually (4 weeks?) would get our £.
At any point there could be a counter-bid or no bid.
Hope this helps and again it is just my opinion but I’m no expert.
If this gets approved, then yes. Either sell beforehand but you won’t just be able to hold on to them. The PE company will acquire 100% of share capital.
One word of warning. No deal has yet been agreed. There is no ‘floor price’ as some people speak of. There is only that if there is an 100% chance the deal goes through. I have nothing to suggest it won’t, but the market is telling me that it thinks that the deal will probably complete at 35p but there is more downside risk of the deal not completing than upside potential of a last minute higher rival bid.
Some may be tempted to buy now for what may be seen as an easy 7% gain between the share price and offer price. Nobody leaves 7% on the table these days for no risk. It may be a gamble worth taking and will probably work, but if it doesn’t then the board have made it pretty clear that going alone isn’t a long term strategy and I can’t see many other rival bids.