Business

Investors fret over potential Musk U-turn in $44B Twitter deal

Published

2 years ago

28/04/2022

MNN

Traders worry billionaire Elon Musk may not have enough money sitting around to fund his $21 billion cash contribution and could decide against selling some of his Tesla Inc shares to come up with it.

Investors speculating over whether Elon Musk will complete his $44 billion acquisition of Twitter Inc have sent the social media company’s shares to their lowest level since the deal was announced two days ago.

Traders fretted that Musk may not have enough money sitting around to fund his $21 billion cash contribution and could decide against selling some of his Tesla Inc shares to come up with it.

He has backtracked before.

Earlier this month, he decided at the last minute not to take up a seat on Twitter’s board. In 2018, Musk tweeted that there was “funding secured” for a $72 billion deal to take Tesla private, but did not move ahead with an offer.

In addition, Musk would have to pay only a $1 billion breakup fee – a sliver of his fortune estimated by Forbes to be $240 billion – to walk away from the acquisition.

“There’s a lot of headline risk over the next six months that it takes to complete the deal,” said Chris Pultz, portfolio manager for merger arbitrage at Kellner Capital.

Representatives of Musk did not immediately respond to requests for comment.

Low chance of deal completion

Twitter shares ended trading in New York down 2.1 percent at $48.68, a big discount to the $54.20 deal price, implying a 62 percent chance of the deal being completed, according to Reuters calculations.

That is a relatively low chance of deal completion, investors said, given it is unlikely that Musk, who has no other media holdings, would face antitrust scrutiny.

Tesla shares fell more than 12 percent on Tuesday, wiping out $126 billion in value, amid concerns Musk will have to sell shares in the electric car maker to pay for the $21 billion equity check in the Twitter deal.

Musk could calm some of the market jitters by providing more details on the source of his equity financing or bring in partners to help split the check.

This, however, could introduce new risks to the deal based on the identity of these partners, some fund managers said.

Roy Behren, managing member of Westchester Capital Management, which has $5.4 billion of assets under management, said the $1 billion deal termination fee was not high enough to make Musk think twice about walking away from the deal.

“In the context of his net worth, and the size of the transaction, the fee is smaller than one would have expected,” Behren said.

Source: TRT World

Business

CWEIC office to establish in Maldives, Janah as Chair

Published

2 days ago

16/05/2024

Commonwealth Enterprise and Investment Council (CWEIC) has announced decision to establish its office in the Maldives, and appoint President Dr. Mohamed Muizzu’s Principal Advisor Mohamed Ali Janah as its Country Chair.

CWEIC in a statement on Thursday, said the office will be established to connect the Maldives government with international investors and businesses.

The Maldives hub office of CWEIC will play a vital role in seeking prospective investment opportunities from all 56-member nations of the Commonwealth. The office will also enhance strategic alliances and partnerships between these countries and the Maldivian government.

Veteran entrepreneur, Janah boasts of over 30 years of business relations with the Middle East.

Source(s): sun.mv

Business

Dubai company awarded the development of SEZ

Published

6 days ago

12/05/2024

An agreement has been signed by the Maldivian administration with UAE’s International Free Zone Authority (IFZA) to develop Special Economic Zones (SEZ) in the Maldives.

The agreement, officially co-signed by Minister of Economic Development and Trade Mohamed Saeed and IFZA Chairman Martin Gregers Pedersen during a special ceremony, marks a significant milestone in economic development.

Speaking at the ceremony, Minister Saeed emphasized the timeline for finalizing the agreement, committing to reach a consensus within the next four months. As part of the agreement, Fonadhoo in Kaafu Atoll will be transformed into a financial hub, featuring a new financial center and a bridge connecting Male’ and Hulhule. IFZA will bear the expenses for these developments.

The Ministry of Economic Development and Trade further highlighted plans for the Economic Gateway project in Ihavandhippolhu, aiming to attract investors with IFZA’s expertise. Addressing the attendees, Chairman Pedersen expressed confidence in the success of the project, underscoring collaborations with investors to further enhance opportunities in the Maldives.

The development of SEZs remarkably aligns with the President Dr. Mohamed Muizzu’s vision to diversify the economy and stimulate financial growth. The Maldivian administration is optimistic about attracting future investments and positioning the country as a desirable destination for business opportunities.

Source(s): PsmNews

Business

Over USD 713M generated attributing to revenue increasing by 3.7%

Published

7 days ago

11/05/2024

Ministry of Finance has revealed a remarkable surge in the government’s revenue generated as of April 25, which exceeds USD713 million. The latest weekly fiscal report publicised by the ministry indicates that this contributes to a 3.7% increase in revenue in comparison to the revenue of USD693 million, generated within the same period, in 2023.

The fiscal report shows that the revenue comprises USD 596 million in tax revenue, USD116 million in non-tax revenue, and USD3 million in aid received. Tax earnings include import duty, business and property tax (BPT), goods and services tax (GST), as well as earnings from GST. The breakdown of revenue generation includes USD45 million from import duties, USD168 million from BPT, USD330 million from GST, USD24 million from green tax, USD22.6 million from airport service charges, and departure tax.

Expenditures until April 25 totalled USD817 million, with USD629 million allocated to recurrent expenses and USD181 million to capital expenditures. This represents a significant reduction in expenditures compared to the USD244 million spent by the government in 2023, during the corresponding timeframe. Recurrent expenses cover USD207 million for salaries and allowances and USD408 million for administrative work. Meanwhile, capital expenditure primarily encompasses expenses related to structural development.

Source(s): PsmNews