FuelCell Dilution Dive and G4S Powers Up Offers
FuelCell shares fell around 15% on Wednesday after announcing they will be creating and selling at least 43.5 million new shares of the stock.
There are two sides to every story. By adding between 43.5 million and 50 million in new shares, the company will be diluting existing shareholders by about 17.3%. On the other hand, this move has the potential to bring in an extra $105 million in new capital for FuelCell. A move that can strengthen their balance sheet and put them in a better place for growth going forward.
G4S is getting used to being in the power seat now that it has rejected not one, but four cash offers to buy the company this year. GardaWorld, a smaller Canadian rival valued the company at 2.97 billion pounds or $3.81 billion in USD equivalent in its most recent offer.
GardaWorld’s best offer for one the world’s largest private security companies topped 190 pence per share. At the time of writing, G4S’s share price is above 200 pence or 5% above GardaWorld’s offer.
Looks like GardaWorld will need to pop out their checkbook once again if they want to close this deal.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.