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hpham10

03/15/11 10:12 PM

#9193 RE: StockCroupier #9192

Sunlogics Power Fund Management will received 40 M shares of SLMU after the R/M. The existing 27 M OS of SLMU is still intact. The resulting OS = 27 M + 40 M = 67 M shares.

The Intro Message have this info too.
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nsomniyak

03/15/11 11:19 PM

#9195 RE: StockCroupier #9192

I'll take a stab at that one.

Typically the way this works is that the acquiring company (SLMU in this case) issues additional shares to the owners of the company being acquired (which could be public or private).

At this point you would still have our shares, but they would represent a smaller portion of the pie, since more shares were issued to make the acquisition.

How good a deal this is depends broadly on two things: what % of the total shares outstanding after the acquisition are owned held by us, the people who owned SLMU before the acquisition (the higher the better for us) and how big the new pie is, or in other words, how valuable the assets and operations being acquired are (the higher the better for us).

You will not get separate shares in the new entity--after the merger those assets are part of what each share of SLMU is in fact a share in.