First possibility: Shenghe sweetens the deal by tipping in more money.
Second possibility: another company makes a counter offer.
Third possibility: the deal falls through, Shenghe walks away, and Peak has to go it alone.
If Peak has to go it alone, the risk is massive, and you’ll see the share price tank, at least in the short term (depending on how well the company manages to execute.)
I’m still pondering what to do; by my calculations, I’ll take a loss on this deal, even if I take my full entitlement in the placement. Fortunately, there’s time to think it over.
PEK Price at posting:
32.5¢ Sentiment: Buy Disclosure: Held
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