RE:RE:RE:RE:Would shareholders be upset with $0.70 buyout?malx1 wrote: snajem wrote: malx1 wrote: malx1 wrote: Might happen. Then they may increase offer to 0.75 or 0.80 in hopes of appeasing shareholders....... The time to sell entertainment assets is during an economic boom, so the timing of a potential takeover here is not ideal as we face looming recession with the consumer maxed out with debt and falling real estate prices. If only a single bidder for business then there is the risk of a bid that undervalues TNA. Insiders own 93mm shares so 32mm in the hands of retail shareholders says there's only $21mm on the table for mom and pop.......... Time will tell. Be ready for a low bid as starting point.
Point out where I was wrong after posting this price target for readers here waaaaay back in early September. Very negative group here now splitting hairs. Second offer sounds shaky. May fall through. Fortune Gaming might have trouble getting financing.
Just to clarify, Fortune's bid cannot be conditional to financing to be considered a "superior bid" per the agreement with Maverick, so that statement is not factual. Maverick has until tomorrow to respond (match or raise bid) so we will see where the dust settles. Fortune can also match whatever revised offer comes from Maverick. The U$0.605 offer implies 3x EBITDA valuation which is still very low. A buyer coupd still fund the whole acquisition with 100% debt, so still a bargain for Maverick or Fortune at these levels.
Straight from their lawyers or did you hear that from the guy calling for $4 share price?
From public disclosure - the agreement was posted on SEDAR. The Maverick definition of a Superior Proposal is onerous to another bidder (per below - cannot conditional to due diligence nor financing), so the fact that Fortune met these conditions give their bid a lot of credibility.
"“Superior Proposal” means an unsolicited bona fide written Acquisition Proposal to acquire at least 50% of the outstanding Company Shares or all or substantially all of the assets of the Company and its Subsidiaries on a consolidated basis made by an arm’s length third party after the date of this Agreement: (a) that did not result from or involve a breach of this Agreement or any agreement between the Person making such Acquisition Proposal and the Company; (b)
that is not subject to any financing condition and in respect of which any required financing to complete such Acquisition Proposal has been demonstrated to be available to the satisfaction of the Company Board, acting in good faith (after receipt of advice from its financial advisors and its outside legal counsel); (c) that is
not subject to a due diligence and/or access condition; (d) that is reasonably capable of being consummated without undue delay, taking into account all legal, financial, regulatory and other aspects of such Acquisition Proposal and the Person or group of Persons making such Acquisition Proposal; and (e) in respect of which the Company Board and the Special Committee determines in good faith, after consultation with its outside financial and legal advisors, and after taking into account all the terms and conditions of such Acquisition Proposal, including all legal, financial, regulatory and other aspects of such Acquisition Proposal and the party making such Acquisition Proposal, would, if consummated in accordance with its terms (but without assuming away the risk of non-completion), result in a transaction that is more favourable, from a financial point of view, to the Company Shareholders, than the Arrangement (including any amendments to the terms and conditions of the Arrangement proposed by the Purchaser pursuant to Section 5.3(h));"