a lot of things need to happen here but a very simple explanation is as under... there can be any number of different scenarios as to how it can unfold..
if someone comes up with an offer to TO LWP - say at 4c...
the new entity now needs controlling holding of the register - 51% (most go for more ) of all shares allocated... in this case we as shareholders have the option of selling our stake to the new entity at the said price - in this case 4c...
if the offer is not good enough, we may refuse to sell to them and if there is less than their required acceptance, they can refuse to buy any shares for 4c... (for example if only 10% of shares are sold to them at 4c, they may not be interested and they can walk away as they WANTED 51% as they said in their offer)
if all goes well and if we all (or most of us) sell our shares to them, they are now the new holders of all (or all that sold to them) and the company becomes theirs to manage...
if n offer for 4c is on the table and if it PERCEIVED to be good, the sp will almost always go as near to 4c as possible.... sometimes, the sp may even jump above 4c if there is a chance of another entity being interested is also possible or if the current entity is ready to pay more than the first offer...
as I said, a lot of things happen in TOs... each case s different...
you can always sell on market if you do not want to wait for the new buyers to pay you out - this will be a slightly lower sp than the last offer - for a 4c offer (and if they are going to pay you after 3 months - for eg), the sp will be around 3.7c and you can sell at 3.7c on market...
hope this helps
LWP Price at posting:
0.9¢ Sentiment: Buy Disclosure: Held
