RE:37.5 million shares post SIBNAV according to Dream Office is estimated at $35.85 after a fully subscribed SIB. A half NAV offer of $18 for the REIT just might be accepted. That would be a greater discount to NAV than Artis received with Cominar on what I think we can all agree are much higher quality Dream Office Toronto assets.
You're right SNAKEYBOY - Artis certainly has the money to participate in acquiring Dream Office if they were to sell their FCR position which is, in my opinion, a lot less of a hypothetical than it might seem to be given they have been selling their FCR position. Artis/Sandpiper will have an ~20% stake in Dream Office after a fully subscribed SIB without any further purchasing of Dream Office so they wouldn't even have to sell that much FCR to take a 33% stake in Dream Office like they were happy to take in Cominar. A 33% stake would involve acquiring around 5 million further units of Dream Office which would cost them ~ $90 million at $18/unit.
SNAKEYBOY wrote: Only 18 million shares wiill not be in Coopers/DAM/Sandpipers/Artis' hands (assuming they dont tender)
18 x $16 = $288 milion
If unit price falls or can't appreciate and is stuck at $15 or lower it means we dont need a second SIB necessarily, but Artis & DAM could just fund a second SIB out of their own pockets to mop up 10 million more shares. Artis can sell FCR and buy another 10 million D.UN shares thus using it as a NAV writeup to $19 by no longer recording it as a public security. DAM can add more.
Seems too easy for them to take advantage of the situation IF the SIB is oversubcribed, OR the SP falls back to $14 after. Unless they really do care about us shareholders. Thats why owning artis provides protection to D.UN holders