Post by
valuator50 on Apr 03, 2018 12:08pm
Offer or just a proposal?
The press release from Electra states clearly that it is an 'offer' to purchase for cash conditional on due diligence. Later in the release the word 'proposal' is used but I would not take that to suggest that we are dealing with anything but a serious offer.
Electra is well financed, does not make financing a condition so looks to be fully capable of completeing the deal.
Management owns less than 1% of the shares and they have had at least a week to prepare a response and I imagine they have spent the time on the phone to large shareholders trying to get support to block the deal since they would probably lose their positions should it go through. They should not have been communicating only to some shareholders and not others on such a material event and need to send out a press release stating their position ASAP.
It's hard to see why the stock is not trading at a price much closer to the offer.
Comment by
semiRet4ever on Apr 03, 2018 12:21pm
Seems from the article that Electra made an offer in December 2017 as well. I dont recall hearing anything about that either. I have been holding these shares fro several years now and am in no hurry to sell.
Comment by
DanielDarden123 on Apr 03, 2018 12:37pm
A proposal only, is not material, therefore does not have to be disclosed. If this was a definitive offer it would have been disclosed when it was received (Dec. & Mar.) by RUF.