OTCPK:AVPFF - Post by User
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AlphaBetaCapon May 05, 2022 6:19pm
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Post# 34660401
Takeover Offer?
Takeover Offer? Why did Avcorp agree to this deal now?
The Government of Canada has said that it will announce the F35 contract in the next few months. It’s very likely that Lockheed Martin will be awarded the F35 contract and there will be significant long term revenue benefits for Avcorp. M&A interest in Avcorp and the value of the company will likely be significantly higher after that contract has been awarded.
Also, the takeover price of $0.11/share is very low. The upside for Avcorp is that any new offer of $0.13/share or higher would be advantageous, even after Avcorp paying the purchaser a $4 million deal termination fee.