I am completely naive in matters of corporate takeovers and am...

I am completely naive in matters of corporate takeovers and am only too aware of being more optimistic than is in my interests but my reading of today’s announcement is -

The OBJECTIVES are -

For RAP - that they receive $3m and a R&D partnership with Pfizer to develop products in the Covid field. (Presumably this was part of the deal)

For PFIZER - that they get the opportunity to take a large holding in RAP, the size of which being determined by the number of shareholders that are prepared to sell their shares to them at 11.5c. (But they are prepared to buy all the shares if offered to them)

The END RESULT -

RAP - progresses the Covid results and has a $3m cash injection.

PFIZER - ends up being (presumably) the largest shareholder in RAP but (according to responses today on HC that I believe are representative of retail investors) achieve nowhere near sufficient for an acquisition of the company.

SHAREHOLDERS - any shareholder who wants to get out at 11.5c gets the opportunity to do so without major sell pressure occurring in the market. Those who do not sell hold in a company that is in a much better position and that has been achieved without an issue of shares or CR.

Directors are not recommending that shareholders sell their shares and have not indicated they will themselves sell their own holdings. They are recommending that shareholders approve the Scheme being made available (to Pfizer and to shareholders).The Board is not recommending an acquisition they are recommending the Scheme.

Am I just being optimistic?

poorinvestor