From today's earnings release - $100M/54M shrs out ~ a max potential additional payout of $1.85/shr, making the deal worth a total of ~ $9.79/shr:
Both the patent sale transaction and the merger transaction are subject to customary closing conditions, including the approval of MIPS Technologies' shareholders, who will vote separately on each of the transactions and the recapitalization. Approval of the patent sale transaction is not subject to stockholder approval of the Imagination merger transaction. The merger is subject to stockholder approval of the patent sale transaction and the recapitalization. == The proceeds of the transactions, which are subject to a fixed holdback of approximately $100 million to cover tax and other liabilities, will be distributed to MIPS' stockholders on a pro-rata basis through a recapitalization of MIPS common stock
maybe a nickel or dime - more
but apparently MIPS believes - and has and continues to believe - that the way they are selling and merging will cause a tax liability close to or equal to cash on hand. PER MIPS do not expect more then 7.94 - total
Looks like you were right, new 8K out today, we're only getting an extra 7 cents/shr, locking me into a 35% loss (but only -17% net based on current values of what I sold to buy MIPS, a small silver lining):
As previously announced, MIPS Technologies, Inc. ("MIPS") entered into an Agreement and Plan of Merger dated as of November 5, 2012, by and among MIPS, Imagination Technologies Group plc (LSE: IMG) ("Imagination") and Imagination Acquisition Sub, Inc. as amended by Amendment No. 1 to the Agreement and Plan of Merger on December 9, 2012, and as further amended by Amendment No. 2 to the Agreement and Plan of Merger on December 16, 2012 (the "Merger Agreement"). As previously announced, as condition precedent to the closing under the Merger Agreement, MIPS will distribute all proceeds from the previously announced patent sale transaction and all of MIPS' cash on hand, less $99,700,000, in the form of a recapitalization via an amendment to MIPS' certificate of incorporation (the "Recapitalization").
On February 5, 2013, MIPS announced that (i) pursuant to the Recapitalization each outstanding share of MIPS common stock will be converted into $6.21 in cash and 0.226276 shares of MIPS' common stock and (ii) following the consummation of the previously announced patent sale transaction with Bridge Crossing, LLC, the Recapitalization and the acquisition of MIPS by Imagination (in which each share of MIPS' common stock, after giving effect to the patent sale and Recapitalization, will receive merger consideration equal to $1.80 per share), MIPS stockholders will receive aggregate net proceeds of $8.01 per share pursuant to such transactions.