RE:Constellation funding questionsIf I recall correctly they are funding the $5B with a loan from Bank of America. The $3B would probably be extra, we dont know what it's for.
weed4fun wrote: After reading the Consellation placement and then wanting to sell part of their wine business for $3B,
i am not sure how to read it.
They say the offering is to fund the Canopy investment. That’s for $4B. When they announced the deal I don’t recall them declosing how they are coming up with the funds.
Secondly, they now want to see part of their wine business for 3B. That won’t be enough to buy the of Canopy. I think if they execute the warrants they wound own appropriately 53% of Canopy.
To buy the remaining 47% don’t they have to come up at least a 30% premium of the share price or at least $80 per share. The only they can afford to do that is via a acquisition of cash and Consellation shares. Maybe 0.35 or 0.4 shares of STZ for every Canopy and maybe some cash or perhaps just shares only.
Just looking for someone who can help me with what I am thinking. Maybe I am reading too much into this.
The usual shorts and bashers need not reply. You know who you are Especially, angel dicky.
Tim McCracken I would love to get your insights on this
thanks