Skywest considers takeover bid by Chinese buyer, China’s CNOOC to pay $12B for the assets, but says a’significant amount’ will go to capital improvement.
CNET’s Jim Fader broke the story of the bid, which was first reported by Bloomberg.
The deal includes $11.8 billion in cash, $9.2 billion in cash equivalents and shares in CNOOC Holdings. China’s CNOOC Holdings is listed on the London Stock Exchange.
CNET has learned that a potential CNOOC buyer, and the potential Chinese buyer, are Chinese investment bank Fosun.
A senior executive at an investment bank said a “significant amount” of CNOOC’s cash will go to investment capital improvement, according to an executive with knowledge of the negotiations. Other sources told CNET that about $8 billion of CNOOC’s assets will go to capital improvement.
It remains unknown how the Chinese buyers would change the CNOOC business as it moves from CFO to CNOOC stockholders, said the executive.
The source declined to be identified in order not to prejudice future business.
In a call with analysts, Chinese CNOOC’s CEO, Li Xiaochuan, said the company had no intention of raising capital, according to Bloomberg.
The source told CNET that the deal is about to be approved by regulatory authorities, a process that may take weeks, but is expected to be completed by mid-February if all goes as planned. The deal would raise a total of $9.2 billion.
Some experts and observers believe that if Chinese authorities approve this transaction, the company, with approximately 8 million shares outstanding, could have up to $18.5 billion at the tim예스 카지노e of closing, which would be around triple what the company owes to its shareholders.
In February, the company posted a loss in its second fiscal quarter.
The deal would create China’s second-largest telecommunications company following a m시흥출장마사지ajor bid from Tencent Holdings to take control of a leading U.S. internet firm, the Wall Street Journal reports. Alibaba was reportedly willing to pay at least as much as $65.5 billion. The deal, known as a $13 billion transaction, has not massageyet been approved by regulatory authorities.
However, CNET learned that the deal is in a much stronger position than that because the two companies are different.
CNOOC Holdings, which will now operate the world’s largest cell tower company