Indigo Books & Music Inc T.IDG

CEO and her husband own 75.6% of Indigo

[mingzhu]

"Mr. Schwartz's wife, Heather Reisman, is CEO of Indigo. Oncan said it and other entities controlled by Mr. Schwartz and Ms. Reisman now own almost 18.2 million Indigo shares, or 75.6 per cent of the company"

[mingzhu]

correction: they control 75.6%

[BlueGuitar1]

I didn't know that about share ownership.  No wonder she said "depths of losses to be seismic" and no wonder it is so painful.  This is a pennystock.  I wonder if the government will offer a low interest loan? Can't they go to the markets?  

[wheeloffortune]

Being the power couple own 75.6%, it'll probably go private, which is something Schwartz usually does--he did it last year with Westjet.  What he'll pay minority holders is another question.  Schwartz is a billionaire, so funds is not an issue and his wife Reisman would never let it go under.

[mingzhu]

even they control 75.6 shares, they cannot take it private without at least 30% of 24.6 retail investors aggreeing to it, like you and me, according to regulation. So the takeover price must have some premium. this is right of minority. If other company likes to take it over, that is another matter. in that case, they want the price as high as possible .

[wheeloffortune]

Yes, there's a premium, but the holdout price has to be based on an appraisal of what it's worth.  That 30% can't just say we're holding out for $10 a share if there's no appraisal to back it up.  That's what happened with HBC.  There were several appraisals, but a few holdouts wanted higher than the highest appraisal and the judge didn't allow it. 

[BlueGuitar1]

I imagine that this and Westjet are suffering seismically too.  I think I will spend my giftcards before I lose it all.  IMHO, The business model does not work in this environment.  Wouldn't it be like throwing good money after bad in taking this private? A gov't bailout might be needed but I don't think it will happen.  

[mingzhu]

my estimated takeover price : $3

[wheeloffortune]

I was thinking around the same pre-covid price too.