Boro Boy wrote: ↑Fri Jun 19 2020 11:42pm
It seemed pretty clear to me.
"...and such fractional entitlements does not exceed £16.2 million."
Why should ii make any more money available over and above the £16.2million when they have already indicated it is at their discretion what happens next? They are more likely to play about with paper and mess about with the share allocation to even it all out.
To you perhaps but you are ignoring the fact they would like all the share.com membership to continue to use the brand or the ii service that will presumably replace share.com at some point in time. It's not black and white. Why would they leave the option in the documentation to have discretion to make either style of change if they had no intention to do it or not providing them with actionable resolutions? To humour share.com shareholders? Perhaps but most probably not - they need to be able to see exactly what the situation is at the end of trading and this gives them the options to handle it.
It is a double edged sword. If there is only a small difference in the cash required to "balance the books" I would be surprised if they didn't just find the cash and be done with it. It's a simple exercise that does not cause them any side effects apart from the cash expenditure. If they have a bigger difference they will have to look at the latter option of fudging the figures for shares and cash. However, this risks the bad side effect of potentially pissing off those due shares and money by devaluing their stakes. That's not good promotional activity. Sometimes spending is the best way out of things.
There will be shareholders whom have sold their entire holdings in recent weeks since the takeover agreement was announced. The prospect of having cash tied up in shares within a company that is not listed isn't a great one for many investors. That's most likely why there hasn't been a rush to purchase shares at the current price. Additionally, many small shareholders may well have sold out in recent weeks, with their quotas being bought by larger shareholders where less cash will be needed to complete the takeover.
There are also various other things that could be happening behind the scenes. Like I said - things are never black and white.