Replies to post #598749 on Mr Cooper Group Inc (COOP)

[SamuraiProgrammer]

There is always that possibility but the F&R ratio would be VERY dependent on the size of the assets

IF:

SP = Share Price of COOP at the time of the deal

BVPS (Book Value of COOP per share) = Shareholder Equity / Shares outstanding

CVPS (Current Value of COOP) = the greater of SP or BVPS

BKV = Value of assets being acquired from BK remote holdings returning to releasing escrow holders

The number of shares that should be handed over to purchase would be:

NS (New Shares) = BKV / CVPS

This price should make releasing escrow holders happy and not anger current COOP shareholders because the addition of the assets will not raise the value of current COOP shareholders. Rather it will just make the company larger.

We can get some idea of some of the variables.


SP : 13.44
BVPS : = 1,766M / 91.07M = 19.39
CVPS = 19.39

so

Shares to Buy BK Assets = BKV / 19.39

So

1B --> 51,572,975 shares
10B --> 515,729,757 shares

and so on.

The only unknown (to us) variable would be the size of the BK assets.

Face it, if COOP (formerly WMIH) wants what belongs to, they need to pay for it.

I doubt it will unfold that way, but I could be wrong.

Also, I remember seeing some language in POR 7 waaaay back when WMIH was spun off that I thought meant that WMIH was NOT allowed to purchase assets from WMILT. I could be wrong in my interpretation of that. Furthermore, if they try to buy them from the trustee, who knows if it would even apply. Those lawyers are slippery. :)

I know this is an unsatisfactory answer, but in all honesty it is the best we can have until we know other things more fully.