I believe it is possible for a deal to be both opportunistic and fair, and I think that is what AGT Food and Ingredients (OTCPK:AGXXF) (AGT.TO)
shareholders are looking at today in the recently-announced
management-led buyout offer of C$18/share. It is definitely possible to
argue that this is a low point in the cycle and that investments AGT
made in recent years will start paying off more significantly in 2020
and beyond, justifying a buyout price that should start at C$20. At the
same time, though, you can look at the company’s poor liquidity/debt
situation, its ongoing operational struggles, and the unpredictability
of crop and weather cycles and conclude that, while this may not be full
value for shareholders, it’s not a bad walk-away price for a company
still likely a couple of years away from EBITDA leverage.
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With The Company Still In A Cyclical Downturn, AGT Management Gets Opportunistic
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