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?