High Arctic Energy Services Inc T.HWO

Hostile Takeover

[Stonksonlyup90]

Don't ignore the potential for a hostile takeover.

Despite the fact that Cyrus Capital holds 45%, there is still the potential of a hostile takeover. Since the sale of the Cdn assets last July/22 there has been 4.2M shares traded while the share price has traded from $1.55/share down to $1.20/share today (down 23%).

The company now trades at liquidation value. If an activist investor had been able to acquire 9.9% of the float they would be sitting on 4.9M shares. Said activist investor could make a bid to takeover the company at Book (or slight discount to Book). Let's say they make an offer for $2.20/share or $107M valuation. 

If you take the net cash and Real Estate out of the equation they would only be paying $60M for the whole. Considering the value of Team Snubbing & the Note Receivable that's another $10M EASILY. So call it $50M for the remaining Canadian operations & PNG. The later of which has the potential to do $200M in revenue per year (with 4 rigs operating) and with a 20% Operating Margin call it $40M/yr in Operating Income... discount that valuation all you want, but 1.25x Operating Income is ridiculous cheap.

Even if the deal doesn't go through, it would be forcing Cyrus' hand into making a move (which would be higher than $2.20/share). So said activist investor would be making a hefty return on investment regardless - $2.20/share less an ACB of $1.50 (let's call it) = $0.70/share or 47% return.

The time to make a move is BEFORE Management decides what to do with the cash hoard.

Hold on tight... this could get interesting!!

^The above is all pure speculation and not investment advise.. but the possibility does exist!!

[Possibleidiot01]

So much easier to approach the people with a control position and make an offer IMO. "Since the sale of the Cdn assets last July/22 there has been 4.2M shares traded while the share price has traded from $1.55/share down to $1.20/share today" You need a volume of 116% of the last 9 months to get to 4.9 million shares!

[Stonksonlyup90]

CASH IS KING!! If there ever was a time for Cyrus, or another investor, to make a move here now would be the time. Cyrus owns ~45% of $HWO as currently structured. As such, 45% of the cash hoard is theirs.. what would the additional capital requirement be to purchase the remaining 55%? Pretty immaterial IMO! Cyrus could make an offer in the $2.50 range - call it $122M, of which they