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I am launching a takeover bid

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skc

skc

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Anyone ever had any experience in launching a takeover bid? I am interested in acquiring all of the shares in HGO.

Current price ~$0.24 with 413m shares outstanding, so market cap = $99m
Long term debt = $44m
Cash at hand ~$8m

Options outstanding ~45m, of which 20m has strike price < $0.3.

If I was to launch a takeover bid at $0.3. For 413+45 shares I will only need $137m + $44m for the debt. So total cost is $181m

I receive from HGO $8m cash + $200m from STO (who just bought their stake), resulting in $27m cash net. Pay ~$5m to bankers, lawyers and accountants, and I get $23m in my pocket.

I also walk away with all of HGO's assets and a free option on ESG being taken over.

Why not? Who's with me?

Anyone done this before?

Would a bank lend me $180m on the condition that STO is about to pay me $200m?
 
Re: I am launching a takover bid

skc said:
Anyone ever had any experience in launching a takeover bid? I am interested in acquiring all of the shares in HGO.

Current price ~$0.24 with 413m shares outstanding, so market cap = $99m
Long term debt = $44m
Cash at hand ~$8m

Options outstanding ~45m, of which 20m has strike price < $0.3.

If I was to launch a takeover bid at $0.3. For 413+45 shares I will only need $137m + $44m for the debt. So total cost is $181m

I receive from HGO $8m cash + $200m from STO (who just bought their stake), resulting in $27m cash net. Pay ~$5m to bankers, lawyers and accountants, and I get $23m in my pocket.

I also walk away with all of HGO's assets and a free option on ESG being taken over.

Why not? Who's with me?

Anyone done this before?

Would a bank lend me $180m on the condition that STO is about to pay me $200m?
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ok so when you put a buy in for 413,000,000 shares @ $0.24 what do you think will happen to the price?
 
Re: I am launching a takover bid

If it succedes let me know - I'll take the copper resource off your hands for $1M. :D
 
Re: I am launching a takover bid

Kez180 said:
ok so when you put a buy in for 413,000,000 shares @ $0.24 what do you think will happen to the price?
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Exactly, you'll need to offer a premium to entice people to sell up or accept the takeover offer.
 
Re: I am launching a takover bid

nomore4s said:
Exactly, you'll need to offer a premium to entice people to sell up or accept the takeover offer.
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I am offering $0.3. That's a premium of 25% over the current price, and 35-40% over the VWAP of the last 14 days.

With $1m from doogie I will increase my offer to $0.31.

Obviously I will do an off-market offer rather than on market $0.24. But I might accumulate 20% first and see what happens.

Shame that I don't have the $36m required.
 
Re: I am launching a takover bid

how about;

get a 50.1%+ controlling interest,
Sell off all assets/ repay debt.
And pay bonus shareholder dividends,

sure.. not the big win you were going for but a nice safe payout, all the same.
 
Are you serious?!

Have you ever heard of an "investment bank"? Basically every one of them has a M&A department which you should get in contact with BEFORE making your intentions public LOL
 
lol actually thought about buying out a low cap bio once . mkt cap was 3 mill :D... change the name , find some rocks and ramp the sucka on hotcopper:D

nirvana man
 
Naked shorts said:
Are you serious?!

Have you ever heard of an "investment bank"? Basically every one of them has a M&A department which you should get in contact with BEFORE making your intentions public LOL
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I have contacted Babcock and Brown. Unfortunately their phone was unattended.

matty2.0 said:
I'll greenmail you first.
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What is greenmail? Nevermind, googled it.

Profiting from an attempted hostile takeover by forcing the target company to buy back the hostile bidder's shares at an inflated price
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Trouble is with these sorts of takeover bids is like with TMX - IRM:

- Need a premium
- They make a placement
- Maybe a rights issue
- No-one can be bothered giving you shares considering they bought it at a much higher price and their holding has shrunk to an insignificant value
- Costs money to send out all those booklets.

In all seriousness, a better way would probably to buy up lots of shares and then "highlight" the fact that they have cash > market cap on your favourite discussion forum.
 
Strident said:
Trouble is with these sorts of takeover bids is like with TMX - IRM:

- Need a premium
- They make a placement
- Maybe a rights issue
- No-one can be bothered giving you shares considering they bought it at a much higher price and their holding has shrunk to an insignificant value
- Costs money to send out all those booklets.

In all seriousness, a better way would probably to buy up lots of shares and then "highlight" the fact that they have cash > market cap on your favourite discussion forum.
Click to expand...

Totally different situation.

TMX - IRM was swapping 1 bit of worthless paper for 2 bits of different yet equally worthless paper. My takeover bid will be a cash bid, with 25-30% premium.

The booklets cost nothing to send out. There are probably no more than few thousand shareholders. Say $10 a book it will cost in the order of $25-50K max.

The biggest cost is for the investment bank to organise for me some bridging finance - probably 350bp above BBSW will do - over say 3 months. That's $180m x 8% x 3/12 or ~$2.5m. Plus say 60-80bps in fees, which is another $1m.

So $5m in costs should do it after paying the accountants and lawyers.
 
I don't get it, why would STO have to give you $200m?
They didn't buy it off you did they?

By the way did you really try to ring Babcock & Brown? Under which rock has you been hiding? Why not try ringing the people in the silver doughnut or any of the major banks.

Do let us know how you get on ok? This is very entertaining.
 
matty2.0 said:
I'll greenmail you first.
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hahaha..all someone needs is a 10% blocking stake :) not hard..getting +90% is harder :p:

If u won the $90m oz lotto or can convince either winners to lend u the money then u might have something here lol

good luck
 
vincent191 said:
I don't get it, why would STO have to give you $200m?
They didn't buy it off you did they?

By the way did you really try to ring Babcock & Brown? Under which rock has you been hiding? Why not try ringing the people in the silver doughnut or any of the major banks.

Do let us know how you get on ok? This is very entertaining.
Click to expand...

Sometimes it is worth bringing a sense of humour to these forums.
 
Nahhh ... let them wander around aimlessly in the dark for a while.

SKC ... have you tried Lehman Brothers or Storm Fianancial Group for backing? I heard they have room on their loan books for just one more tilt at the windmill.
 
are you really that stupid?

didnt you read the beginners forum?

open a comsec or even westpac account. they will let you buy shares without funds available.

now you just need to decide to buy as many shares as you can on market(with money you dont have) or maybe get others involved. im willing to buy $250k worth, provided i dont pay for them.

cheers

PS there may be a small dishonour fee involved, but some have had that waived for a first offence.
 
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