sell

What Happens When a Company You Own Stock in is Bought?

0:00
↔️ ↕️

Timecodes:

Alison Southwick: The next question comes from Vince.

"Can anyone at TMF explain what happens when a company you own sells to another company,

as in what happens to the stock? I own Mazor Robotics, which recently sold to Medtronic.

Do my Mazor shares automatically convert to Medtronic or automatically cash out once the sale is complete?

Do I have to do anything like sign an agreement for my shares or sell the shares to Medtronic?

Or do nothing and it magically takes care of itself in the mysterious trading world?"

Jason Moser: The short answer is yes.

Southwick: Oh, great! Moser: Yes.

It's an interesting situation because there are a lot of different ways this can be resolved for you.

We'll use Mazor Robotics as the example because that was the example that was given, but there was

a recent deal where Medtronic has agreed to acquire Mazor Robotics and this is an all-cash deal.

So Medtronic is going to pay all cash for this.

The deal has already been approved and it is expected to close during Medtronic's third

quarter ending January 25th, 2019.

They're sort of tying a bow on everything and making sure the regulatory environment

will allow for this acquisition to happen and it all looks like it will.

When we look at that all together, the deal is Medtronic is going to pay $58.50 per share

in cash for Mazor Robotics.

This means if you own shares of Mazor Robotics, Medtronic is going to give you $58.50 per share in cash.

And you can see that Mazor Robotics today is trading pretty close to that price.

That indicates that the market thinks this deal is likely to go through.


Related queries:


how to sell private shares of your company
can you sell private stock
can you sell shares in a private company
how to sell private stock