Say a buyer is going to pay $35M to equity in takeover
7m shares = they pay $5.00 a share
7.7m shares (10% more because of incentive plan) = they pay $4.67 a share
The acquirer will ascribe a value to equity and then divide that by the shares outstanding.
The incentive plan means we would simply get less.
The buyer isn't going to adjust their offer because of the Incentive shares, they don't care, it just will be lower.
The incentive plan is just simply bizarre. I can't comprehend how anyone can think they just get 10%. I'm actually going to change my vote on the directors. That they suggested something this pathetic warrants a change. They are just greedy.
Go find another job elsewhere
SEA Price at posting:
16.5¢ Sentiment: Buy Disclosure: Held
