VGW is doing a restructure and putting a new foreign based holding company in place that will own all of the shares in VGW.
The new company is borrowing $1.3 billion in order to also offer to buy the shares of the 30% of shareholders that are not associated with Laurence Escalante. The offer is $4.60 per share plus 45 cents in dividends (of which 30 cents is being paid this coming Friday). It appears the majority of holders (and all of the larger shareholders) think that the $4.60 price is ridiculously low, especially considering 2 years ago the company did a buyback at $6.50 per share. The last financial results seen by shareholders were last year and they showed a 25% increase in revenue and profit over the year before when the previous buyback occurred. So the company has increased significantly in value but the new offer is 30% less than the previous buyback so this is a major problem for shareholders.
The $1.3 billion being borrowed is enough to pay over $7 per share so shareholders believe the $4.60 offer should be increased substantially.
Wait until the Scheme documents are published in about a month.
