I wonder if this is another case where one must offer at least the highest purchase price from, say, the last 12 months at which Darth has bought Evo themselves, and I wonder what that level might be if that’s the case?
And was that [level] exceeded because of the share buyback program at Evo or because of the acquisition?
So, what should one do while waiting for a buyout offer and a potential price for it? Should I buy more to lower the average cost even further?
Regards,
Sitting on the risky bench of the parlor car
How likely is it that the price is just around the current share price, which many probably won’t accept? In that case, after the tender offer expires, Dart would be able to buy more shares without the constraints of a tender offer. Is there any rule stating that a tender offer must be higher than the current share price?
The AI tells it like this: “The offer price cannot be arbitrary. It must be at least the highest price that the buyer (or parties acting in concert with them) has paid for Evolution shares during the preceding six months.”
I haven’t investigated further whether this is actually the case.
If I checked correctly, approx. 745 SEK is the highest price at which the stock has been traded over the last 6 months, so that would be the so-called “maximum minimum price” for a takeover bid.
It’s unlikely that an offer would go through at such a price.
I suspect that since they bought directly over the threshold, the offer will just be around the current market price. I recall reading that the offer price must be at least the highest price paid by the purchaser during the 6 months preceding the triggering of the threshold.
So, the offer would be, for example, 700 SEK per share, and if no one takes it, they are then free to continue buying shares.
When was the shareholder list on the IR page last updated? Specifically, Dart’s purchases last week were about 100k shares more in total than Capital Group’s entire holding of 9,950,547 shares. Could a block trade have been executed there, since CG has been on the selling side anyway?
In the Nordnet stock discussion, people were speculating about this potential low-priced/no-premium offer from Kenneth. That would clear the path for him to buy more without triggering a mandatory redemption offer.
I don’t see an undervalued offer as a bad option; it likely won’t go through, and after that, Dart can buy shares on a large scale. At the same time, share buybacks are rolling, and the free float is shrinking.
I believe the timing for crossing that 30% threshold has been carefully considered in order to keep the tender offer low enough.
There’s a lot of extra buzz surrounding Evo right now, so good luck trying to keep up with what the big boys and girls are up to. It likely has to do with the short sellers.
Nasdaq has decided to call for stressed market conditions in derivatives on Evolution AB (EVO) for four hours, after which time an assessment of market conditions will be made to determine if stressed market conditions are still valid.
Stressed market conditions in derivatives are called for when the underlying asset to a derivative experience high and short term intraday volatility or when other factors causes high uncertainty in the pricing of derivatives. When stressed market is called for it means that market makers are allowed to quote prices with double the normal spread.