I've read an article about a company I'm planning to invest in is planning to sell a 20% stake of the company to an unnamed "strategic investor". Proceeds of the sale will be used to "to fund loan growth and meet higher capital requirements". It doesn't say in the article whether new shares will be created for this transaction. Is it normal for such transactions to create new outstanding shares? Regardless, how will this news affect the short-term and long-term price of the company's stock?
The news article regarding the stake sale can be read here.