I think the price would have been ok, but the terms and conditions seem very onerous.
Aspen Group's satisfaction with its continuing due diligence investigations When do these due diligence investigations end? provision of finance for the acquisition of the Sigma shares on terms satisfactory to Aspen Group No guarantee this will happen. Should Sigma be doing a due diligence on Aspen before locking itself into a takeover offer? Sigma's current lending facilities remaining in place on principally the same terms and with the same security position which currently exists, with amendments relating to existing debt repayment requirements What debt repayment amendments are required by Aspen? This would mean that Sigma would have to re-engage with its bankers to modify existing repayment schedules. It is a very tough ask. I would think Sigma board would say something along the lines of "take it or leave it" execution of a scheme implementation agreement reflecting the commercial terms of the offer and other terms satisfactory to each party, including certain warranties, 'no talk' and 'no shop' provisions and provisions entitling Aspen Group to a break fee on termination for certain reasons Means that Sigma cannot solicit alternative offers during this period extension of the recently expired exclusivity arrangements to 2 August 2010 no termination or amendment of certain material contracts as a consequence of the potential change in control of Sigma shareholder and court approvals for a scheme of arrangement regulatory approvals no material adverse change occurring from 30 June 2010 no 'prescribed occurrences' (being the matters referred to in section 652C of the Corporations Act) no other adverse or value affecting events or external event conditions (such as material decreases in stock exchange indices).What are these adverse events e.g. DJIA falling below 9000 points? Or is it 6000 points?
SIP Price at posting:
39.5¢ Sentiment: Hold Disclosure: Held
