What happens to share price when a company goes private?

beeza650

I have ForgeRock shares - NYSE FORG.
Thomas Bravo have just announced they will buy them at $23.25 a share.
Does that mean the share price will now rise to close to that but not exceed it?
What normally tends to happen please?
thanks

ColdPensioner

That means that the new owners will give you 23.25 for every share you own. And then you won't own the shares any more.

So decide to spend or re-invest somwhere else ! 

wmb194

beeza650 said:

I have ForgeRock shares - NYSE FORG.
Thomas Bravo have just announced they will buy them at $23.25 a share.
Does that mean the share price will now rise to close to that but not exceed it?
What normally tends to happen please?
thanks

If it's all-cash, when the deal goes through you'll be paid $23.25 for each of your shares and you'll no longer own them.

it may or may not rise towards it or even exceed it - it depends on whether the market believes it will actually happen and what the chance is of another bidder entering the fray.

DE_612183

ForgeRock shareholders will receive $23.25 for each share held, which represents a premium of about 53.4% to the stock's last closing price.

Nice little earner...

Alistair31

This happened with me recently (MNZS) and as above, your shares will automatically be sold and you will see cash in account when it concludes, it can take some time.

 Personally if it reaches the sale price before last trading day I’d just sell it myself to avoid delay. 

One thing I noticed, which is quite annoying, is that on Morningstar portfolio performance page your gain (or loss) will no longer be taken in to account if you include the final sale as a transaction.

DullGreyGuy

There is a period between a deal being announced and it closing/happening... just look at Twitter and that deal, the shares have tanked since it was announced. 

Not all deals go through, there are normally various get out clauses for both parties, and so the response depends on both general market conditions and the markets thoughts on likelihood of completion. If its not an all cash deal then there will also be consideration on what the market thinks of the claimed synergies that the deal will deliver. 

beeza650

It's an all cash deal. I'd rather not sell. I think they are worth more. I paid more. I'm hoping major stock holders may block it. If does look like it's going ahead then I'll set a sell price at $23.25 for now I'll keep it at $25.00