E-L Financial Corp Ltd T.ELF

EVT SIB

[BB123456]

EVT got 1.85% of their shares, much less than they were looking for at the top price of $140.

https://finance.yahoo.com/news/economic-investment-trust-limited-announces-011600839.html

I would think we'll hear from ELF and UNC shortly

[chuck84]

imoressed you are watching for news real time also! yeah great news. EVT got 75% of tender size so was no point extending not sure if delay in other 2 is because planning to extend or just timing of releases if extention, it would be because much smaller take up than EVT  but good news is they paid top of range as opposed to trying to get price down there was a worst case scenario

[chuck84]

great news across the board. well done all.

[Thor16]

What are your thoughts over the next 12-18 months Chuck?  Feel free to DM if you'd prefer.

[chuck84]

sent dm. sorry so late!

[Thor16]

Sent you another one - with nothing important included! :)

[Thor16]

At this point it looks as though there is very little buyback ability / liquidty in ELF, EVT, and to a lesser extent UNC.

[Malpeque2]

So why are any of them still Public?

[Method]

Why not? 

[Thor16]

Valid question Method.  And welcome back :)  The costs and requirements of a public company are substantial is of course the short answer.  The doublding of your family net worth at a tiny fractional cost is more likely the real answer.  I don't remember the numbers however it was something like a savings of 10 million dollars a year for ELF to privatize.  Compound

[Method]

I still hold. I don't think they ever take it private. The tax consequences are potentially high and they have issued other publicly traded securities which help keep the cost of capital low. I own it because it's the best way to buy a liquor quality GARP portfolio at a 50%+ discount to NAV. I think at some point over the next 30 years the discount will close.

[Thor16]

If there is the case, which of course is very possible, why bother to buy back the stock?

[Method]

It's very accretive to buy buyback stock at a 50%+ discount to NAV.

[Thor16]

One more for good luck? ;)

[chuck84]

could set your watch to it!

[dangood]

If memory serves me right this one had all their shares taken up by the substantial issuer bid last year where the others (ELF and UNC) were prorated. This year the % amount is subsrantially less but I'm thinking they can still go out at $145 for all shares tendered. We wil see. I was hoping the Cundill Funds had these holdings in spades but it only looks like they are showing up under QV

[chuck84]

in the last SIB, while ELF and UNC were oversubscribed, it was just barely ELF got 98% fill at top of range, 965 UNC got 95% fill at 110