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03-02-2019, 07:19 PM
This is a major acquisition and will likely use up all the cash from MS' balance sheet.
"The Group’s participation in Newco will be through the subscription of new shares and provision of a standby line of credit."
From the description of the transaction, it looks like the target company is in distress. It will be interesting if the identity of the target company is made known. OPMI will then be able to do their own due diligence, if it is a public company.
The likely intent of MS may be to enter the American market through this local partner.
In any case, it will be a long time before the transaction is finalised, and even longer before any fruits from the venture can be seen.
"The Group’s participation in Newco will be through the subscription of new shares and provision of a standby line of credit."
From the description of the transaction, it looks like the target company is in distress. It will be interesting if the identity of the target company is made known. OPMI will then be able to do their own due diligence, if it is a public company.
The likely intent of MS may be to enter the American market through this local partner.
In any case, it will be a long time before the transaction is finalised, and even longer before any fruits from the venture can be seen.