dilution pricing, page-2

If the company chooses to do a capital raising for the buyout, would it really be a dilution?

More shares would be on issue - true - but the assets also increase. Devil in the detail to determine the net effect.

Which raises another point - capital raising would not be the only way to fund the buyout. What if the company took out a loan? I recall in the announcement mention of a debt provider.

In which case my limited accounting knowledge tells me this may be awesome - The P&L statement would look good, as their revenue & profit from the venture would double, effecting the P/E metric for the fundamentalist investors. The Balance sheet would bear the liability, and as above, the devil in the detail (Assets = Liabilities + Equity).