So, this is all about renewable electricity. My family has quite a large amount in stock at a rough 10% loss in stock of EDP-R. This stands for EDP Renováveis (i.e. renewables) which is a company mostly owned by our main electricity provider, EDP, with 77.5% of all the shares.
It just so happens that EDP have made a buyout offer for all the minority shareholders at 6.75€ a share, when it was 7.03€ not even a month ago. As it was expected, it has now found a balance at around 6.75€.
With this they expect to obtain at least 90% of the 22.5% of the shares they don't own, so that they can become a privately-traded company again, leaving the stock market. They have reported this much.
Current financial scenario: Net profit grew 89% YoY for the 1st semester of the year, from 128M in 2016 to 242M in 2017 - Earning per share of 0.07€ to 0.15€. They seem very healthy finance-wise, though evaluation is not really my strong suit hence my request for help. You can find their latest report here and choose to download "1st Semester 2017 Management Report and Consolidated Financial Statements". Alternative PDF auto-donwload!.
My question is, what are the possible scenarios?
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I can accept the offer at a total of 10% loss. End of story;
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I can refuse the offer and they fail to get the 90% of the remaining shares and the stock stays in the public stock market, as usual, or;
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If I refuse the offer and they leave the stock exchange, what happens then?
I've read that upon delisting stocks may be worth close to nothing so why should I refuse? What's to be gained by that?
I'd appreciate help on this till Monday, since that's when the decision has to be made. Thanks.
Submitted July 29, 2017 at 08:19PM by creativedoctor http://ift.tt/2eWZDHy
