19 thoughts on “Third letter to Independent Committee of the Board of Hunter Douglas N.V.

  1. Nice. Jeremy, do you have any experience with Squeeze out procedures and how this works with the broker holding the shares? I hold my shares though InteractiveBrokers and was wondering (I will call them separately) how this works; presumably the shares will be delisted and then a monetary settlement will be automatically credited to my InteractiveBrokers account when the squeeze out procedure reaches a conclusion?

    • no experience specifically w squeeze outs, you should inquire with your broker. I believe your understanding is basically correct but IB will be able to tell you exactly what will happen. worst case you may get a check in the mail in a year or so and have to redeposit it, but hopefully you can handle it all automatically through your brokerage account.

  2. Just received an email from the IC in response to my letter that I sent before they raised the offer. Looks like a boilerplate language referring me to the may 22 press release.

  3. when do you expect the delisting to occur? Or, will there be a notice ahead of time on the delisting timing through a PR?

    • its still unclear if it will be delisted at all. they would need to formally proceed to a squeeze out; then apply for delisting, etc, which may well not be granted (since they won’t own 95% of the common at the time). it is all a bit messy.

      as a first step, they will likely report the results of the tender offer on june 3, along with perhaps an extension of the offer; a change in terms (maybe); or something else (a formal squeeze out announcement). the stock will likely trade normally til at least then if not longer. obviously if the offer gets extended the stock woudl trade normally throughout that period.

  4. Early on in the discussion regarding HDG it was suggested that the family’s interest in taking the company private was motivated by reasons related to estate planning. Does anyone understand anything more specific about these motivations (i.e., what is the benefit?, in what jurisdiction?, etc).

    Thanks!

  5. i’ll put some more thoughts together on this in the coming days but suffice to say i think (absent a huge bump in bid to something closer to fair value) this is probably the best case outcome. if the PR is actually followed through on (still some risk here) and the shares aren’t squeezed out, you get all the effective asymmetry of the situation without the illiquidity/delisting risk. frankly i think this would be a once in a generation type risk reward.

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