As I put on the official bidder's statement, this deal is a joke.
Many of the Board retaining their positions and also all getting "rights" vest up front if the deal goes though - they would have to wait for conditions to prevail if the company remained public.
Last time I checked it required a vote from shareholders....we've heard nothing formally from AIO on the deal, the majority shareholder, just Allegro's unspecific talk talk of it acquiring debt in over 75% of debt holdings for less than 100 cents on the dollar (mainly held by AIO) in its bidder statement (10.3). Feel free to correct me....
You need to do you due dilligence, but ultimately, continuing to hold my equity in SGH in a private entity may even be an option from me.
SGH board members I get, but the willingness of major lenders to take this debt deal really is rather perplexing given the improving business of SGH and its improved ability to meet its debt obligations. For sure this deal under values the future value of SGH for shareholders....or Allegro would not be so eagerly interested in doing it.
SGH Price at posting:
55.0¢ Sentiment: Hold Disclosure: Held
