Q: When I see a headline like : Sigma Lithium Sues Ex-CEO As Messy Divorce Complicates Firm’s Buyout Outlook . Should I worry about how this will effect the business?
5i Research Answer:
SGML is in talks with potential buyers, but nothing at all is concrete at this time. Like any lawsuit, it is ugly, but the key is the defendents own 44% of the company. Stealing trade secrets and or making a bid difficult of course costs them money as well. But we doubt this will really impact any offer, if one materializes. Money talks, and a high premium bid can have a way of getting everyone friendly again. In the divorce (of the former co-CEOs) there is a chance that one of the parties' shares will come up for sale, which could impact the price in the short term. It is a distraction to business, for sure, but we doubt it is going to impact much in the long term development, or potential sale, of the company.