appears this is essentially an $18.25 stock selling at a discount today.
and if we believe the combination of these companies [possibly with no div burden]
will be worth more than the parts - then the price of newco/IGT will rise after closing...
looking forward to seeing the bottom line in April
The transactions contemplated by the Merger Agreement remain subject to U.K. court approval and other customary closing conditions set forth in the Merger Agreement, and are currently expected to close in early April 2015.
ROME and PROVIDENCE, R.I., Feb. 26, 2015 /PRNewswire/ -- GTECH S.p.A. today announced that the Nevada Gaming Commission unanimously approved GTECH's pending acquisition of International Game Technology (IGT). This is the final gaming authority approval required to complete the transaction announced on July 16, 2014. A court order expected in the coming weeks from the U.K. Companies Court specifying the date of the effectiveness of the merger of GTECH with and into International Game Technology PLC (formerly known as Georgia Worldwide PLC) is the final condition to closing, other than other customary closing conditions. The acquisition of IGT is expected to be completed substantially concurrently with the GTECH/International Game Technology PLC merger.
I was considering that one banked since it was announced - but don't think it will go out to June - agreeing with xmen's timing
also from gtec's site
"LONDON, Jan 29 (IFR) - Italy's GTECH could launch the multi-billion dollar bond deal backing its acquisition of US slot machine maker International Game Technology as soon as next week, according to a banker close to the transaction."
looks like they think we are getting close....
either way Im just waiting..
why do you not like NewCo after the close - looks like a much larger, more efficient co - overall reduced marketing cost - no dividend cost [at least at start] -- seems it should be a more profitable company than either of the parts.......
NewCo will have its corporate headquarters in the United Kingdom and maintain
operating headquarters in each of Las Vegas, Providence and Rome. NewCo will
apply for listing solely on the New York Stock Exchange (NYSE). IGT's shares
will cease trading on the NYSE and GTECH's shares will cease trading on the
Borsa Italiana. It is expected that NewCo will continue under the name GTECH plc.
Its not ALL about paying dividends - one needs to think just past the end of their self serving nose... a 10-15% div [3-4% at previous prices] is not all that bad --- and this will give the co a much better opportunity to recover - hopefully buy back a bunch of shares at 25-30 cents on the dollar
I do believe much of the drop [beyonnd that of other healthy O&G issues] has been to tax loss selling - and funds not wanting this thing showing up in their portfolio -- both of those events should be over now ---- although next week will be a low volume period I expect to see LINE creep up a little - we will see..
Im not a bean counter but just thinking that Linn might be announcing a significant share buy-back plan in the near future
they just closed on a couple of deals with considerable cash coming in and will cut their budgets for next year
seems they would be paying around $10 for shares that they sold in the 30's and basically, buying back debt that they are currently paying 20% on with low interest money
am I missing something?
getting off to a nice start - increased dist by 2.5%
I'm thinkin this will see this on a regular basis - helping to boost the SP
particularly as they put their new found pile of cash to work
it won't go to $18 - this is about it.
the discount at this point is due to the shares you will receive if you wait until the deal closes.
at closing you get $13.69/sh + shares in the newco [value approx $25/sh] = approx $18.25
if you sell now vs wait for the close date you get the discounted price reflected by the market - currently $16.87
ambulance chasing a-holes might delay the closing but I doubt it
I agree - the cost of your bk shares is your basis - the initial distributions are tax free as they have the same value -- anything above that value is capital gains and when you sell you will be owing taxes --- eventually
don't know what the result was - but the Co said something about potential for another small distribution in July based on some sort of residual funds after the debtors were paid off...???...??? If anything I doubt it will be much..
according to the S-1 dated April 1 and revisions the initial annual payout will be $1.15 to common unit holders --- and it could be increased if subordinate holders all get paid
"We intend to pay the minimum quarterly distribution of $0.2875 per unit ($1.15 per unit on an annualized basis) to the extent we have sufficient cash from operations after establishment of cash reserves and payment of fees and expenses, including payments to our general partner and its affiliates."