Q: please comment on thnk research acquisition by lender beedie, is this taking
thnk private? what is meant by continuing shareholders? who will own the private co?
is loan to own a common practice? thanks
thnk private? what is meant by continuing shareholders? who will own the private co?
is loan to own a common practice? thanks
5i Research Answer:
With a deal for a small company, a loan is fairly common. It is a form of committment and also discourages other buyers (more debt). It is a friendly deal, all cash, at a good premium. 48% of shareholders have already agreed to tender. We doubt any other parties show up here. Upon closing of the deal, Beedie Capital will own all the shares, and they will be delisted. Continuing shareholders references the executives who will still own shares (private shares) after the deal. This is done so that executives remain at the company and stay committed to its future growth.