Whilst you are talking about dilution etc, which is fine if you've just instantly increased the size of your business by more than you were diluted... I guess the question we need to ask (and the market will answer), is whether at $34mil we've just got a good deal on Kaddy, paid fair value, or paid too much... and whether the value added to DW8 as a whole is more than we have paid. Always a little harder to determine when acquiring an unlisted company that doesn't already have a value attributed to it by the market (not that that is always right... but it is something to hang your hat on at least)... but for sure the owners of Kaddy have just walked away nearly $7mil cash and a $27mil stake in the new combined entity.
Obviously the management team at DW8 think that $34mil was at least fair value and value accretive to DW8... so in that case being diluted, but in a bigger entity is worthwhile.
I will be taking a bit more of a position in DW8 so I guess that puts me in agreement with the management team. The market will tell us whether it agrees soon enough.
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