Longview Oil Corp LGVWF

RE:RE:Update

[Nawaralsaadi]

It seems they have already been allocated, from the press release:

“”the Underwriters have allocated to the Interested Party, 9.3 million Longview Shares under the Secondary Offering, representing approximately 19.8% of the issued and outstanding Longview Shares.”

That 19.8% will not change the premium, if anything it may increase it since the buyer will have to buy only 80% of the shares at a premium. Furthermore, a hostile bid by an entity that owns 19.8% would be considered an “insider bid” and their shares won’t be able eligible to vote, they would still need to get the majority approval of the shares they don’t own. The purpose of owning those 19.8% is to make it harder for another bidder to buy the company, so what we may not have is a bidding war due to them owning a big chunk.

With them buying such a big chunk, they will have to file an early warning report by the end of the month (once the offering is closed) so we will get to know the identity of the bidder.

It is worth noting that whoever they are, they are being very aggressive in their pursuit, I rarely see that in Canada; and I am not against an aggressive acquirer if they will deliver a fair offer in the end. Eventually, I would want to be invested in a company with an aggressive and astute board/management, the interested party seems to know how to play this game. Unlike AAV board which proceeded with a secondary at an all time low, a secondary I advised them strongly against, and now they are repeating the fruit of it.  

But make no mistake about it with them buying 19.8% already, they will end up owning all of LNV, it is just question of when and how much.

Regards,
Nawar