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$1.15 diverger limited

Ann: Indicative proposal to acquire Centrepoint Alliance Limited, page-11

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42 Posts.

59

24/06/22

20:35

Post #: 62196671
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Originally posted by firsova: ↑

Looking at the deal, Diverger shareholders are forking out $55 million for CAF not $65m as the merged entity keeps the $10m of cash within CAF has as a part of the deal accoridng to the option agreement.

DVR need to find $33m cash and then issue $32m of new shares to CAF shareholders for the deal to proceed .

At present DVR has about 40m shares , so current shareholders should end up with about 40% of the combined entity , CAF shareholders about the same, and a raise or debt will be needed to fund the transaction.

DVR may need to raise its entire market cap again to fund the cash component or use CAF own cash to fund the cash part of the bid.

They will either need a bank , or have to do a rights issue to get this done , which is normally discounted to last price to get over the line which means CAF shareholders get even more shares.

As CAF shareholder I think it is a great deal if I can get 16.5 cents in cash and new shares in DVR at around 80c per share equivalent

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My guess is that HUB provides Diverger with the financial support to get it done.
Without HUB’s support I can’t see Diverger raising the funds on favourable terms.

DVR Price at posting: 87.5¢ Sentiment: Hold Disclosure: Held
2 Upvote

2 Great analysis

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