Regardless of which company BUD is potentially acquiring, it doesn’t address the fact that the current market cap values the existing business pre acquisition. There would have to be considerable synergies for current BUD shareholders to be better off post acquisition?
If the rumours are true that the company is LIFX, I believe they have had a series A VC round of $15mUSD several years ago. So presumably a $60m ish AUD valuation back then. I doubt those investors would settle for anything less than a significant return on that investment unless LIFX are performing badly and they jumped at the chance to recoup their investment through liquidation preferences.
If LIFX are going great guns, and if BUD are doing a placement for the acquisition, then I fear existing shareholders might be up for a big dilution if they don’t get an opportunity to participate?
BUD Price at posting:
9.5¢ Sentiment: None Disclosure: Not Held
