From what I hear there will be a reverse split and metro will then by up all the shares for 1.5 billion. After do ing a reverse split of 1 for 2 and dividing the shares by 1.5 billion dollars, it came to around 8.40 per share. So we''re trading around 18-20% higher than we''re trading at currently. Someone tell me if my numbers are off and why
I have read the agreement and understand it to say that we will be given a 2 for 1 reverse stock split first. 50 shares for every 100. That cuts in half the shares outstanding from 315 mil to 157.5 mil. After that, those 157.5 million shares will share equally in 1.5 billion dollars. Roughly $9.50 per share by my calculations. What I couldn't find was a timeline. Here is the text from the agreement I am refering to:
the Company has agreed (i) to effect a recapitalization and reverse stock split (the "Reverse Stock Split") of the Company's common stock, par value $0.0001 per share (the "Common Stock"), pursuant to which each share of Common Stock outstanding as of the effective time of the Reverse Stock Split (the "Effective Time") will thereafter represent one-half of a share of Common Stock and (ii) as part of such recapitalization, to make a payment in cash (the "Cash Payment") in an amount equal to $1.5 billion, without interest, in the aggregate to the Company's stockholders of record immediately following the Effective Time.
I don't think any of us have enough information on any deal and I have not yet received a ballot to vote on it.
In addition to $1.5 billion, PCS shareholders get 26 percent in the new company. So your calculation is missing the 26 percent value of the new company. The question is how much does 26% of the new company worth? Since AT&T was willing to pay $39 billion for T-mobile, I say 26% can be worth a lot more than we think. I will buy more PCS if it dips below $9.50.
You are correct. Everyone should vote no if the price isn't right. D/T is trying to steal the company with the officiers at PCS in agreement. Vote no if the price isn't significantly higher from here..