Advantage Energy Ltd T.AAV

Dutch Auction

[retiredcf]

(Paraphrased) $11.20  was the low price in the range for the current dutch auction underway at Advantage Energy. But with the share price currently below this level, would you tender your shares to this offer? 

It is fairly rare to see a share price below the low of a Dutch auction which means that the auction will likely be successful very close to the low end of the range. That said, we would not be inclined to tender because AAV has a very solid balance sheet, good growth expectations, and a very low valuation. Also the auction will result in less shares outstanding so per-share leverage will increase. Again, given its valuation and sector outlook, we think AAV is a keeper. (5iResearch)

[kepiyal]

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[pennydredful]

it   is  likely   to   be   at    12.90  

[Margin321]

I put some shares in at $12.90. There is a bit of arbitrage there with the current share price. Could buy back more shares if the timing works out. 

[maurizion]

I guess I don't understand how this auction works. Why are there sellers at 10.80 -10.90 when the minimum auction price is 11.20?

[maurizion]

No actually 12.20