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Concordia Healthcare Corp. T.CXR.R



TSX:CXR.R - Post by User

Comment by Stockcoach1on Dec 05, 2015 1:19pm
123 Views
Post# 24357707

RE:RE:cxr

RE:RE:cxr
sunshine7 wrote: "The equity consideration of 8,490,000 shares included in the purchase consideration has been determined using a share price of $27.19, which reflects the NASDAQ share price of the Company on October 20, 2015." ... now who do you think had an interest in bringing down the share price to that level after CXR issued shares at US$65 for US$500M proceeds? Are they still holding on to these shares or disposing at higher price? I would like to know if they continue to hold or if there is a no trade clause.


Wrong, 
Cinven received 8.49 million common shares of Concordia (approximatelyUS$0.7 billion) as part payment
700,000,000 / 8,490,000=82.48 USD per share or around 110.09 CAD. That is the closing price/ share the day before deal was announced.
And there is a trade clause, and yes they are still holding. Check the insider holdings.
 
 As part of the total consideration to be paid in connection with the acquisition of AMCo, Concordia has issued a fixed number of common shares to the sellers of AMCo in the amount of 8.49 million common shares representing 17 per cent ownership in Concordia on a non-diluted basis. Upon completion of the acquisition, Cinven will hold approximately 14.2 per cent of Concordia’s outstanding common shares on a non-diluted basis, bringing the total number of issued and outstanding common shares to 50,836,876. Cinven has entered into a governance agreement with Concordia, whereby it has agreed to customary lock-up, standstill and transfer restrictions.
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