RE: What’s holding us back17 Apr 2020 14:05
JAdam,
RRE could manage to take SQZ without taking on any debt, or though a short-term bridging loan would be required if SQZ don't pay their cash out as a special divi beforehand.
The t/o has the edge over a merger, but only just, solely due to AA retaining 'control' and hence major influence on the final destination of RRE in a few years and AA cashing in on the sale of RRE.
A cash/equity offer may be the best way forward for AA. 140p cash offer plus a 50:1 equity.( still leave AA with ~22% of voting equity) Just so SQZ holders still have some upside from the deal. Sum of deal worth circa 156p. Leaving RRE with ~£30m cash in the bank. Clearly these ratio's can be altered to suit AA preferred option should there be one.
Many, including me as a SQZ holder would cash out on that deal.
Clearly imo, a deal will be done by AA, just who with !