Morguard Real Estate Investment 5 25 convertible unsecured subordinated debentures T.MRT.DB.A

MRC hoovering shares

[flamingogold]

Almost a daily event now, MRC is buying up a wad of MRT shares. This reminds me of SRV.UN when the majority owner attempted a takeover bid in the $3 range during covid. It was challenged by an activist investor who came in with a (higher) competing bid and then started swallowing up as many shares as he could get. The shares are now in the $16-17 range.

 

The situation is somewhat similar here except we have no takeover offer yet nor activist. Mr. Sahi is quietly hoovering as many shares as he can in the $5 range because he knows these shares are going to be worth a lot more. He, being the majority owner, has a plan here. Once the sellers dry up, he will need to pay up for the remaining allotment.

[slst]

Love your thinking.....I thought it was just me..... There is a decent block in the Convertible debenture, they could also nibble on at some point.

[babybunny]

Yep, the soft sellers will eventually dry up within a couple years, leaving the likes of us.  The last shares will not be bought for a pittance.