I don't know much about the market but have inherited some Aevum shares which stockland are wanting to purchase for a takeover. My question is if i don't sell them to Stockland but they are successful in their takeover does that mean my Aevum shares automatically become Stockland shares?
Beginner's question about takeovers
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Julia
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Re: Beginners question about takeovers
It closed today at $1.77, indicating that shareholders believe the Stockland offer is opportunistic and unrealistic.
So if I were you I'd be considering not making a decision until it becomes clear what Stockland's next move will be.
The SP has been fairly flat for a while now, indicating expectations for SGP raising their offer have been priced in.
If, however, the offer is withdrawn (probably not likely considering SGP's already substantial stake in AVE) the SP could fall as substantially and suddenly as it rose.
I've just had a look at the AVE chart and see the price jumped (presumably when the takeover offer was announced at the beginning of August) from $1.10 to $1.50.
It closed today at $1.77, indicating that shareholders believe the Stockland offer is opportunistic and unrealistic.
So if I were you I'd be considering not making a decision until it becomes clear what Stockland's next move will be.
The SP has been fairly flat for a while now, indicating expectations for SGP raising their offer have been priced in.
If, however, the offer is withdrawn (probably not likely considering SGP's already substantial stake in AVE) the SP could fall as substantially and suddenly as it rose.
skc
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Re: Beginners question about takeovers
Each takeover is different.
SGP takeover of AVE is cash offer - so you will not ever be converted to SGP shares.
The offer is now unconditional so if you accept the offer you will receive the $1.77 cash in 3 business days.
The offer ends 13 Oct (and perhaps may be extened) and if SGP doesn't acquire all of AVE, it is possible for AVE to remain listed and trading on the ASX. But chances are the price will fall below the $1.77 offer, where you will no longer be able to sell into.
Although sometimes the acquirer will come in a few months later and do a mob up offer to acquire any remaining shares they do not own already. There is no guarantee of course.
Check the ASX announcements for yourself to confirm the above. I have only glanced them for this response.
Each takeover is different.
SGP takeover of AVE is cash offer - so you will not ever be converted to SGP shares.
The offer is now unconditional so if you accept the offer you will receive the $1.77 cash in 3 business days.
The offer ends 13 Oct (and perhaps may be extened) and if SGP doesn't acquire all of AVE, it is possible for AVE to remain listed and trading on the ASX. But chances are the price will fall below the $1.77 offer, where you will no longer be able to sell into.
Although sometimes the acquirer will come in a few months later and do a mob up offer to acquire any remaining shares they do not own already. There is no guarantee of course.
Check the ASX announcements for yourself to confirm the above. I have only glanced them for this response.
Julia
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I see that, as expected, SGP have upped their offer to $1.80.
