GREY:XEBEQ - Post by User
Post by
Winston1on Aug 14, 2022 11:46am
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Post# 34895041
Thoughts on a possible hostile takeover
Thoughts on a possible hostile takeoverWith a market cap of only $106 million, and a Price/Book of 0.36, it's certainly a possibility that there are multiple suitors interested in buying out XBC. There's lot of chatter on here about ANRG being one potential suitor, but I'm sure there's others as well.
To be clear, I don't believe XBC should be sold at this time because the turnaround is in full swing, but at the right price an unsolicited offer could sway the majority of shareholders to accept a hostile takeover.
So what price would be acceptable to the majority of shareholders, while at the same time being an attractive acquiring price by a potential suitor?
Here are my thoughts: The acquiring suitor would definitely want a discount to book value, but it would have to be reasonable. I think an offer at a 25% discount to book value would be attractive to the buyer, while at the same time being attractive to the majority of shareholders. A 25% discount to book value would be $1.40 per share and would be about a 100% premium to the current share price of 69 cents.
The next few weeks/months will be interesting for Xebec, that's for sure.