Enbridge Income Fund Holdings Inc. EBGUF

The ratio was set at .7029

[soundandfury]

That is the conversion ratio .......may 16 close price was just used as an example........nothing more......there is no premium.

[pjn0987654321]

Well, they call it a 5% premium, and by a remarkable coincidence, the share price went up about 5%, yet you say there is no premium.  "ENF shareholders will receive 0.7029 common shares of Enbridge per ENF share, representing a value of CAN$29.38 per ENF share, based on the closing price of Enbridge common shares on the TSX on May 16, 2018, reflecting a 5% premium to the closing price

[soundandfury]

there is no cash value assigned too the ratio........the fact that the ratio gave a small premium to enf closeing price on may 16 means nothing........its the ratio that matters and that does not change no matter what the share price of enb is..........they never offered 29.38 for enf.......the value of enf is now pegged too enb price.....by the ratio

[pjn0987654321]

You obviously know more about the terminology than ENB and the lawyers they pay thousands of dollars to screen the news releases.  Hmm, 95 ignores.  Says it all.  I'll let you have the last word.  I won't be seeing it. 

[TickerTwit]

(1) May/16 closing prices: ENF=27.98, ENB=41.80 (2) The offer: 27.98 + 5% = 29.379, rounded to 29.38 (3) Conversion ratio: 29.38/41.80 = .7029. This will not change under the current offer. (4) The offer was made public and ENF immediately rose to the vicinity of 29.38. (5) Let's say ENB goes up 10%. ENB is now 41.80*1.10=45.98 and ENF (dragged by the offer's conversion ratio) is now

[soundandfury]

[Bobbyme]

the value of enf is now pegged too enb price.....by the ratio As you said.......you are right

[freedomfiddy]

This post has been removed in accordance with Community Policy

[Retire2024]

So buying ENF is the better option. If it rises above the conversion ratio then just sell it. If it stays below you can continue ot buy in at a cheaper price than buying ENB directly.

[rk67]

I see you have a $1 share. I have these $2 shares. I'll give you 0.6 of my shares for each of yours. By today's numbers, that's a 20% premium. And hey, by remarkable coincidence, your share went to a $1.20. Weird. Math, b*tches :-)