Forum Topics IFN acquisition
Bullmunga
Added 6 years ago

So IFN got an offer for an acquisition today at ~35% higher than the share price at the time (offer = $0.80) as a result the share price increased 35% from $0.60 to $0.80..... So what happens now?? If you hold shares and the acquisition goes through will shareholders be paid out at $0.80? Then if it doesn't go through will the price likely go back down? I guess I'm asking what is the benefit of holding and not just selling for $0.80?

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edgescape
Added 6 years ago

Apparently they are doing a on-market takeover so will buy up any shares available. IMHO the takeover is opportunistic and undervalues the company. The board has asked to take NO ACTION while they assess the proposal so I will definitely be sitting tight until we get a better deal. Anyway I'm probably biased as I've had the unfortunate luck of holding power companies being taken over. One was ERM Power taken over by Shell last year, however that was a really good offer. So I switched the proceeds of the ERM takeover into IFN and look what happens!

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edgescape
Added 6 years ago

Sorry my bad. I meant to say it is a off market takeover. What UAC is doing is negotiating with majority shareholders to transfer shares to them, but this is proving difficult. IFN has asked that all shareholders reject the offer which is promising. The terms are unclear as well as the takeover is not fully funded. So I think this will drag for some time.

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