VELAN is worthed more than a shabby $5/shareBABYBUNNY - thank you for your insight. Obviously, as you say, you are not a current shareholder and not hoping to become one.
Given that a $13 takeover offer was submitted last February and in the wake of the government of FRANCE rejection of this proposed transaction, the company will have to sell its French assets Velan SAS and Segault SAS to clear its way to achieve a new takeover.
FRANCE President is considering using a local investor to take a stake in nuclear suppliers Velan SAS and Segault to step up efforts to secure strategic industries from foreign takeovers, which means that the units will eventually become sold. A fund backed by the French state and electricity utility Electricite de France SA was lined up to take a stake in the French businesses. Export Rules
US export rules such as the International Traffic in Arms Regulations, or ITAR, could pose a problem for France, according to the people aware of this proposed takeover. They said it was unclear whether ITAR would apply to Velan SAS and Segault’s technologies, and therefore give Washington the power to veto the export of French submarines?
FRANCE has been the only country refusing the said takeover.
French resistance to the transaction also comes amid a push by Macron for greater “strategic autonomy” for Europe and to increase investment in defense. The government demanded, and got, a golden share in aerospace supplier Exxelia International as part of its approval this year of a takeover by Hollywood, Florida-based Heico Corp. Three years ago, Macron blocked the purchase of night-vision technology company Photonis by the US’s Teledyne.
French President Emmanuel Macron hasn’t been shy about intervening in foreign acquisitions. His government derailed a merger between French and Italian automakers Renault SA and Fiat in 2019, and the takeover of French grocery chain Carrefour SA by Canada’s Alimentation Couche-Tard Inc. in 2021.
Still, the review of the takeover of Velan goes a step further, intervening in a deal between US and Canadian companies.
If the government of FRANCE has knocked out this takeover based on the fact it was a U.S. takeover, then this matter must be settled through an international Court.
VELAN has a book-value of $8.92/per share and may not find a suitor above $10, but why would its stock fall below $4 is irrelevant.