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Bullboard - Stock Discussion Forum Concordia Healthcare Corp. T.CXR.R

TSX:CXR.R - Post Discussion

Concordia Healthcare Corp. > alot different
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Post by commodity16 on Sep 08, 2015 10:56am

alot different

reaction in the markets with this acquisiton than last. I would be a bit cautious here. Perhaps we overpaid a bit? Does anybody see what price the shares were offered at exactly?
Comment by themangokid on Sep 08, 2015 11:13am
we'll that's the thing, I think. share offering hasn't been announced yet. the press release makes no mention, as far as I can see, of issuing shares to help fund this transaction. however, given the size of this deal, in my opinion, its highly unlikely this size a deal gets done without dilution. and that's where the uncertainty comes in. everyone knows an equity offering is ...more  
Comment by commodity16 on Sep 08, 2015 11:34am
Transaction Details The total purchase price will consist of cash consideration of approximately £800 million (approximately US$1.2 billion), 8.49 million common shares of Concordia (approximately US$0.7 billion), and the assumption of approximately US$1.4 billion AMCo net debt upon closing, as well as a maximum performance-based earn-out of £144 million payable in ...more  
Comment by thedave2006 on Sep 08, 2015 11:51am
debt the problem in the deal? dilution of 8.49 million shares and maybe raising monies in shares yet to rid of the debt, this the problem investors wrestling with? cheers, dave.
Comment by cg16 on Sep 08, 2015 11:55am
so am I correct in assuming that in the math you've shown, CXR shares are only valued at $82.45 each? that would definitely bring some pressure on the SP today...
Comment by Itcanbe on Sep 08, 2015 12:14pm
Do you mean $82.45 U.S.D.? If it's $82.45 U.S.D. then in Canadian dollars we are trading way under that right now.
Comment by cavinsin on Sep 08, 2015 12:17pm
Yes that is correct, 8.5M shares for the net proceeds of 0.7B, That is my reading, That is US. I assume
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