It seems like there’s a lot of buzz around the Boreo-Sievi merger!
If you’re bored, you should check out the Inderes KH Group - rakennemuutoksen jälkeen käänneyhtiöksi? - Osakkeet - Inderes forum thread. People are getting heated and plan to vote down the merger. Good luck.
Pyysing wrote a rather tasteless article, in which Preato Capital gets a special mention. Ahnehtiiko Preato liikaa Sievi Capital/Boreo fuusiossa? | Sijoitustieto.fi
Another statement from Osakesäästäjät (Shareholders’ Association) on the topic https://www.osakeliitto.fi/uutiset/sievi-boreo-2/
Let me start by saying that I am a Boreo shareholder, but not a Sievi shareholder.
Everyone (including Inderes) seems to be of the opinion that the merger would be a lottery win for Boreo, and Inderes considers it a good deal (barely, but still, the target price increased by +33% 
) for Sievi. Sievi’s small shareholders, on the other hand, feel they are being outrageously robbed. I’d be interested to hear how Boreo shareholders view the situation?
As I wrote here at the time, I personally don’t see the deal as a lottery win for Boreo, or even a particularly good one.
Pros:
- Sievi would be merged at a low price relative to its own valuation
- Good size would be achieved all at once = the company would start to be a respectable size
- Except for Indoori, the pieces fit together well
- Preato’s ownership share will decrease significantly
- The merger would improve indebtedness
Cons:
- The price is high compared to previous unlisted acquisitions
- Sievi’s companies have significant minority shareholders
- I wouldn’t want to touch Indoori with a ten-foot pole
- Statistically, mergers are more likely to go wrong than to succeed smoothly
I personally would have seen it as a good alternative to raise money through an issue and continue buying small unlisted companies at ridiculously cheap multiples.
@Joonas_Korkiakoski I understand that you cannot predict possible future acquisitions, and therefore Boreo’s valuation is very difficult. I also understand that the Sievi merger is a good move relative to Boreo’s multiples, but do you think I’m on the right track in thinking that continuing independently could have been an even better option in the long run? Compared to previous acquisitions, a high price is being paid for Sievi (yes, a merger, not paid in cash, but a large share is given), isn’t it?
It is theoretically possible for the merger to fail, but usually the groundwork is done so well that this doesn’t happen once the dance begins. And of course, I myself now hope that the merger goes through, since it has been initiated. Of course, I would guess that Sievi’s stock would take a bigger hit than Boreo’s if the merger didn’t go through, but on this at least Sievi’s small shareholders seem to completely disagree with me 