BOSTON & NORTH HUNTINGDON, Pa.–(BUSINESS WIRE)-- Desktop Metal, Inc. (NYSE: DM) (“Desktop Metal”) and The ExOne Company (NASDAQ: XONE) (“ExOne”) announced today they have entered into a definitive agreement pursuant to which Desktop Metal will acquire all of the issued and outstanding shares of ExOne common stock. Under the terms of the agreement, ExOne shareholders will receive $8.50 in cash and $17.00 in shares of Desktop Metal common stock for each share of ExOne common stock, for a total consideration of $25.50 per share, representing a transaction value of $575 million, subject to a collar mechanism as described below and implying a 47.6% premium to the closing price of ExOne’s common stock on August 11, 2021 and a 43.9% premium based on the 30-day average closing price of ExOne common stock. The transaction value also implies an acquisition multiple of 6.4x 2021 consensus revenue estimates for ExOne.
I think that usually, in place of receiving shares in the new company, you are given the cash equivalent as if they are instantly sold when you receive them.
This certainly used to be the case but staff will need to clarify that for you.
I have not done my DD but just finish reading the acquisition News.
"ExOne shareholders will receive $8.50 in cash and $17.00 in shares of Desktop Metal common stock for each share of ExOne common stock, for a total consideration of $25.50 per share,"
It seems to me this is an arbitrage opportunity given that the current price of ExOne is still $17.38 which is lower than $25.50. Have I missed something here?
Of course, this is given that the stock price movement relatively small and cannot be massively controlled by either DM or ExOne to push price of ExOne up until the acquitision is completed.
There is also a investigation news for Merger Investigation from law firm Halper-Sadh-LLP
This Law firm probably does that to push the price of ExOne down so those who pay them could get it cheaper ??.
See how quick the people seized opportunity. The premarket price is now $25.40 and it might jump upi siginificantly when the bell ring.
So no more arbitrage opportunity …
I am not familiar with this merger or acquisition (I am not a shareholder) but I imagine that it has been announced recently. T212 won’t be able to confirm anything until it is confirmed to them, which could be in a few months if the transaction won’t happen until the end of the year. There’s still 4 months to go!
Having said that, in previous mergers and acquisitions T212 has given everyone the monetary value of the shares and unfortunately not the shares themselves. I would imagine that it will be similar for this one, unless they manage to find out a new way of doing it by then.
@EquityInvestor if T212 does not do the share exchange, should I just close my trade once it reaches $25.50 ?
Or there is something I might get on top of that ?
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