Comment by
chopper1953 on Feb 28, 2014 7:27am
MAT is getting a bargin. MB has been a favorite of mine.. Sad to see it go. Hold on, they may up the bid. $20s
Comment by
nerzaa on Feb 28, 2014 9:36am
Agree. What a low ball offer. Can't believe fairfax accepted this. A fair price should be about $25.
Comment by
luda426 on Feb 28, 2014 11:31am
Concur. This is BS. I see how it makes sense for Fairfax given their average cost. They probably have other opportunities to deploy their cash and are happy with the return despite the cash stream and growth potential being worth more than 9.8 times EBITDA IMO. Anyone know what happens to the warrants? Do I need to act at all here or just sit back and wait for my cash?
Comment by
nerzaa on Feb 28, 2014 11:44am
warrants paid with cash as well. no need to convert. mentioned on this morning's call and in the press release: The agreement provides for the acquisition of MEGA Brands for C$17.75 per common share and includes the acquisition of all of the outstanding common shares and warrants of MEGA Brands.
Comment by
luda426 on Feb 28, 2014 11:51am
Thanks nerzaa, I missed that.
Comment by
nerzaa on Feb 28, 2014 12:07pm
no problem. but you will need to wait until closing date to get your money. right now, buyer is bidding 0.38, which is 2.76% lower than the offered 0.3905. this is the time value they are charging until the closing date, 60 days to 120 days.
Comment by
llennn on Feb 28, 2014 2:25pm
It seems to me there is no real enterprise value, 27.30