20% spread, founders & management are very motivated to close the transaction
The company has received a non-binding privatization proposal from a consortium of founders, senior management and a highly credible financier. The spread is at 20%. The buyer group holds 64% voting power.
The offer comes at a wide 25% discount to net cash, so it is not hard to see why management might be interested in taking the company private at this lowball price, especially when the operating business is not burning any cash and likely has some value as well.
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