Leon's Furniture Ltd T.LNF

Alternate Symbol(s): LEFUF

Consumer Cyclical

Leon's Furniture Limited is a Canada-based retailer of furniture, appliances and electronics. The Company's retail banners include Leon’s, The Brick, Brick Outlet and The Brick Mattress Store. The Brick’s Midnorthern Appliance banner alongside with the Company’s Appliance Canada banner, retailer of appliances to builders, developers, hotels and property management companies. The Company has 304 retail stores from coast to coast in Canada under various banners. The Company’s repair service division, Trans Global Services (TGS), provides household furniture, electronics and appliance repair services to its customers. TGS has contracts to support several manufacturer’s warranty service work in addition to servicing a number of individual programs offered by other dealers. Its wholly owned subsidiaries include Trans Global Insurance Company and Trans Global Life Insurance Company also offer credit insurance on the customer’s outstanding financing balances and third-party customer balances.

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Leon's Furniture Ltd > Dutch Auction

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Post by retiredcfon Nov 28, 2021 6:47am

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Post# 34173190

Dutch Auction

It appears to put a floor on the downside through Dec 30th at 24.30 and caps the upside at 25.05. Is this correct?

The price can still breach those levels. Since $200M in shares only represents a bit more than 10% of shares, it is likely that there will be a pro-rata allocation, based on the number of shares tendered in total. In a Dutch auction, daily trading does not matter as the company is buying all the shares in one block directly from shareholders who tender to the auction, which is completely voluntary to shareholders. The $24.30 to $25.05 is the buying range for the company, but depending on what investors expect the price will still vary (and in fact broke $24.30 today already). We typically will not tender to these deals. The company believes its shares are too cheap, and is willing to spend $200M in one shot to prove it. This increases per share earnings leverage by reducing the number of total shares outstanding.

Nicely explained by 5iResearch. GLTA