There is virtually no premium to yesterdays closing price and so values the companies future prospects at nil. I can't see how this is a fair valuation for a rapidly growing profit making company?
RNS:
"Recommended Cash Acquisition
Lifeline Scientific, Inc. (AIM: LSIC), a leading international provider of clinical products and services in the field of transplantation, announces it has entered into a definitive merger agreement (the "Merger Agreement") with Shanghai Genext Medical Technology Co., Ltd ("SGM"), and certain of its affiliates. SGM is a medical products company serving the field of transplantation in the Asia region. Pursuant to the Merger Agreement, SGM's affiliate would acquire all of the issued and to be issued shares of common stock of LSI for an aggregate consideration of up to approximately US$87.8 million in cash (the "Acquisition"). The LSI Board of Directors (the "Board"), unanimously approved the Merger Agreement and will recommend that the Company's shareholders vote in favour of the Merger Agreement and Acquisition. As described in greater detail below, this transaction will require approval of LSI's shareholders at a special shareholder meeting.
Key terms of the Acquisition
LSI is incorporated in the State of Delaware in the USA. The Acquisition is proposed as a merger in accordance with the Delaware General Corporation Law ("DGCL"), as amended. The Acquisition is not subject to the UK City Code on Takeovers and Mergers.
Under the terms of the Merger Agreement, LSI shareholders would receive the British Pound Sterling equivalent of US$4.083 in cash for each share that they hold at the closing of the Acquisition (the "Closing"). The exact amount per share to be paid in British Pounds Sterling will be determined at the Closing, based on the US Dollar to British Pound Sterling exchange rate reported by the Financial Times at such time. Solely as an example, if such exchange rate is then the same as the exchange rate reported by the Financial Times on 1 September 2016 of 1.310 US Dollars to 1 British Pound Sterling, this would equate to an offer price of approximately 312 pence per share. That would represent a premium of approximately:
· 0.7 per cent. to the mid-market closing price of 309.5 pence per LSI share on 1 September 2016, being the…
Is it not normal for the NOMAD to give an opinion on a takeover price? Why did they get one from another company completely?
I knew we wouldn't get a sensible price but this is significantly below my worst figure. There is no operational need to sell I would rather hold the shares for the next 5 years
