- Identify an underpriced public equity with some fixable issues.
- Buy the hell out of it.
- Install Board members to direct improvement, and as importantly, increase the urgency of the pace.
- You have now bought yourself time for proper evaluation.
- Is the present value of a legitimate operating plan greater than its worth to a third party?
- If no, then are you the third party? Congrats – you have materially lowered your cost of entry both in dollars and potential due diligence mistakes.
- If Yes, you have created optionality while making money.
- Fiendishly simple.
Billionaire Xavier Niel Offers $4.1 Billion to Buy Millicom
By Stephen Treloar
(Bloomberg) — Billionaire Xavier Niel offered to buy out other shareholders of Millicom International Cellular SA in a deal valuing the Latin American carrier at about $4.1 billion. Niel’s Atlas Luxco Sarl is offering $24 a share in cash, it said in a statement Monday, below the company’s Friday closing share price of $24.55. The shares held steady at market open on Monday.
While the board hasn’t made a formal recommendation, Millicom’s independent board committee rejected the price as too low in anticipation of an offer last week. Bloomberg News previously reported on Niel’s buyout plan on May 23.
The offer is fully financed through funds available to Atlas and financing provided by banks.
Atlas, already the top shareholder of Millicom, has been exploring a bid to buy out other shareholders for months. It marks at least the second time in two years that Millicom has been an active takeover target.
Millicom’s board hasn’t made a formal recommendation regarding the offers. But its committee of independent board directors signaled disapproval of the anticipated offer last week in a statement, saying it “would significantly undervalue” the company based on its second-quarter financial performance. A spokesperson for the carrier declined to comment further.
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