[est31]

> pay the current minority shareholders of SUSE 67% more than their shares are worth on the open market

For anyone who paid the IPO price of 30 EUR (and it went up to 40 in the months after the IPO), it would mean a realization of their losses. You'd be forced out of your position, down 46% compared to the IPO price. The PE firm probably gave a large chunk to banks at discount prices to facilitate the IPO, but still, this was a really good deal for them.

Even if they won't end up delisting, the jump of the stock price caused by their announcement will have done really good things to their balance sheets, and given that they will pay for the buy-out with a dividend, all it took was to move some money around from daughter company to parent company.

[freetanga]

Their ultimate goal is to sell at a profit. IPO is staggered not to sink prices. But apparently there was not enough appetite for more than 20%. So, so far a failure for the PE.

Usually fund strategy calls for an exit in 5y. If after 5 years they don’t see a good enough return, they need to change strategies. Delisting helps do major surgery in the shadows (labour), and broker a deal that either makes them money or allows them to save face…

My guess is as someone said, reduce costs, implement some income boosting measure, touch up the numbers and sell it privately. Expect a lot of this for half-IPOed PE tech acquisitions made the past 4 years as they realize they will be holding the candle forever, since they bought at peak prices.