RE:Let the negotiation begin.sparkyAg wrote " Kubota is the named winner in the competition to acquire AJX. Now let the negotiation begin.
The stated price Kubota is to pay AJX shareholders for their shares appears unsatisfactory to many AJX shareholders. When the shareholders vote on the transaction, it is likely to fail. Then we can start over and see if shareholders can realize a better price.
A higher price needs to be negotiated with Kubota immediately to avoid the drawn-out process of starting over.
A higher price without delay is favorable to both Kubota and AJX shareholders."
I'm a little stunned by this post . Kubota and Agjunction' s board reached an agreement a week ago that they both considered fair and you want to begin the process again!
The reason , I pointed out the 1% backing behind the Photon Control offer is that management (Agjunction's) probably has the best idea of what the company is worth . They seem to have shopped the company around ( the suggestion somebody made that Piper Sandler & Co. would not do a good job is strange) and the price, if you look at a ten year chart, is about where it was September 1, 2014 and it was only exceeded for a short period in March and April, 2018. Many shareholders would have bought in those years. As KerBer pointed out this is a company that revenues have only declined in recent years .
There is a key paragraph in the buyout news release.
"The Transaction is also expected to accelerate the execution of AgJunction's business plan, enhance access to additional customers and markets, provide efficiencies from greater scale and allows the opportunity for the retention of many AgJunction employees in the go-forward entity."
The important thing to me is it will take money to accelerate the execution of the business plan and probably Agjunction isn't sure they have that money. It's a rock and a hard place thing .
It's a fair offer . From a purchaser whose financing can't be questioned.
There is a potential for a higher offer because it's possible that some of the canvassed companies were of the opinion that Agjunction would not get an offer now and the company would continue to limp along with their patents and maybe could be picked up cheaper .
A firm offer gives third parties a chance to reconsider their options. I'm still not unhappy and waiting to see wht happens.
Thanks for posting the date of record of October 21 th. No malicious intention to the date - they have to pick a date to mail circulars out.