Corel to be bought by Vector Capitol

mgeoffrey writes "Corel announced that Vector Capitol will acquire Corel by buying out all outstanding shares at $1.05 a share. They are buying 22,890,000 shares. Vector Capitol has published a full report." Looks like the natural continuation after Microsoft sold off their Corel holdings.

Comments

Does anyone here check facts?

[Bob Cat - NYMPHS]

The sale price is $98,000,000.

http://biz.yahoo.com/rc/030606/tech_corel_vector _3 .html

I didn't make that a link because I wanted slashcode to annoy you with the extraneous blank.

Re:cheap?

[PerryMason]

The post isnt actually accurate. Vector Capital purchased 22,890,000 Series A shares from Microsoft on March 10th or thereabouts at $0.5625. They are now offering $1.05 per share for the remaining stock. The board of directors has recommended that shareholders take the offer. It "represents a premium of 42% to the market immediately prior to our announcement that Vector had entered into a non-disclosure and standstill agreement with Corel," said James Baillie, Chairman of Corel's Board of Directors.

So from the point of view of the shareholders, its probably not a bad deal.

Re:cheap?

[PerryMason]

The maths for anyone who cares;

Corel shares;
24,000,000 Series A preferred shares
91,840,000 common shares.

VC bought 22,890,000 Series A shares at $0.5625=$12.876 Million.
They now offer $1.05 per share for the remaining 1,110,000 Series A and 91,840,000 common shares=$97.6 Million.

So all up your looking at about $110 Million for Corel, 'lock, stock and barrel'.

Check out their end of quarter financial report up to 28th Feb '03 for the lowdown on their financial position.
The long and the short is; $50 Million in cash/liquid assets, posting losses but with very few liabilities.