There has been a bit of talk about this today, therefore can you please let me know what happens to the option holders in the event of a takeover announcement?
Say the takeover was priced at 5 cents per share, the prevailing share price was 1.8 cents at the time, and the options were 2 cent options (& can be converted say 3 years down the track)?
Under this scenario, would option holders be given the right to convert the options they hold at the strike price of 2 cents - and then receive the 5 cents per share takeover price for each option they decided to convert into ordinary shares?
Or do option holders lose out under a takeover scenario?
Just trying to get my head around this, and your thoughts would be very much appreciated.
Thanks in advance!!
DXN Price at posting:
1.8¢ Sentiment: Buy Disclosure: Held
