RE:RE:RE:RE:RE:RE:RE:Master plan news coming I feel it thelostarc wrote: For example, if a $1Bn acquisition got WELL $500MM in revenue and $100MM in EBITDA and $70MM in free cashflow, then why not? Such a transaction can be funded by +$100MM cash on hand, another $500MM in debt (revolving credit facilities are often upsized based on assets acquired) and the remaining in shares at $9.80/share from a combination of Li Ka Shing and institutional investors.
That's a lofty assumption though. I would assume that if they finance through new shares, the new issue would be closer to $4 than to $9.80. In which case, I don't think they would do it.
The question is... why don't those investors just buy the shares cheaper on the market and turn it private for the acquisition to spin it off later at higher $$$?