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Bullboard - Stock Discussion Forum Eacom Timber Corporation ETRFF

GREY:ETRFF - Post Discussion

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Post by Mike.J on Mar 27, 2013 8:27pm

Selling

Can anyone comment on the validity of this statement. I am confused about the buy out process and the potential delisting. If the stock is delisted 38 cents per share will be credited to you assuming the deal goes through? Is there a possibility for it to be publically listed still even after the buy out? Would help me out need a little more clarity on the situation.                                                                                                                                                                         There are 4 outcomes to the ownership after this takeover:

 

1. If you and other shareholders accounting for more than 33.3% of the shares do not tender, they would not have met their condition above. They may extend the offer (and raise it), but if they cannot get over the hump, there are probably some conditions in the deal that would allow Kelso to walk away from it. ETR would continue to be a publicly traded company

 

2. If Kelso gets between 66.6% and 90%, ETR would continue to be a publicly traded company. Kelso would likely extend the offer to try to get over 90%

 

3. If Kelso gets more than 90%, they could force you to sell your shares at the takeover price. It might sound weird that they could force you to sell, but it is one of the rules on the stock market.

 

4. If Kelso gets 100% of the company, it would be a private company and they would de-list it from the market

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