Why I3e will never put TEI in BKI3e can put TEI in BK only when the last payment of 1.8M$ is paid to lenders. That 1.8M$ has to be paid before the end of 2020
The BK cost for I3e is 37.1M$ = ( 1M$ cost + 3.1M$ income tax + lost of tax pool 34M$)
Assumming in January 2021, I3e put TEI in BK
BK I3e received all TEI assets
I3e will have to paid all the BK cost 1M$
I3e will get more than 28.5M$ in assets for the 3.5M$ paid = 25M$ in capital gain and more
Income tax to be paid 3.1M$ = 25M$ X 50% x 25% tax rate
lost the tax pool of 136M$ or a value of 34M$ = 136M$ x 25%
To all shareholders I did not have any insider information
Up to now, my understanding, is, the I3e management and the TEI management are are working on close doors, ,including both brothers, in the back of the shareholders, and only for the management benefit of both company and I3e benefit.
I will vote no
I3e will increase his offer, I3e does not want to lost 37.1M$ of futur profits
At today value this 37.1M$ has a value of 15M$, TEI shareholders can get 7.5M$ of that value.