Sir Royalty Income Fund T.SRV.UN

SIR Corp. Announces it's No Longer Proceeding with its Offer

[BlueJay2020]

Not really a huge surprise - so what now?

[Robsopinion]

Since none of us were going to tender to it anyways, what's the difference?  we sit back, wait and hope. Just remember there are two sides to the company. The royalty stream which we own, and the operations part that the Fowler's own. We go to zero, it means that they go to zero also. It's in their best interest to get these stores pumping out sales as soon as possible. 

[logicandinertia]

You really have to laugh at the timing, just a day before unit holders can opt-in or opt-out of the third party $4.75 mini-tender.  they clearly aren't happy with that third party mini-tender offer...

[Fabozzi]

Just a big FU to Royalty sharesholders.  

[BlueJay2020]

Still talking about 'hopefully' making it through the pandemic in the same press release as withdrawing a proposed offer equating to almost $25M for the rest of the Trust because they realised no-one was dumb enough to accept it.

[flamingogold]

Fine by me. Time to hunker down and fight our way through this together. I would be concerned if Jacks and Scaddabush in the burbs were shuttering with the work-from-home scenario still on. City cores have been gutted. They will come back but it will take time and with a stronger balance sheet SRV can always re-launch there. I like the new take-out Renegade Chicken concept, I think it will carve

[Lazaros]

This was a pretty aggressive press release. It is almost as if they are angry with the reaction they received from unit holders. They also challenged the unamed party to go ahead and try to make an offer. Some things to note: it does not intend to participate in any strategic process that may be undertaken by the independent Trustees of the Fund. This was very counterproductive in my point of

[jcw604]

It is doing a favor for Janes food so that they can get their shares.

[BlueJay2020]

Yes, I was thinking the same thing.  Not sure whether that is a deliberate tactic or not.  Would it be better for Sir if shares where consolidated in fewer hands? Regardless, it looks like 40% of the shares will now be held by just two parties, which is going to presumably make the stock even more illiquid.  And neither party will be able to acquire more shares without making a

[flamingogold]

Janes vs. Fowler playing chicken... who will bok bok first... sorry couldn't resist.

[babedinkleman]

This post has been removed in accordance with Community Policy

[logicandinertia]

Agreed that jane's offer likely to be over-tendered and this thing may drift lower post mini-tender. Given the company's apparent combative nature, the shrinking of the pool and the stated uncertainty regarding the timing of dividend resumption , I'm tendering a chunk.  My cost base is fairly modest and this situation has become so messy .  I don't suppose I'm the

[BlueJay2020]

If that's what you intend to do, I'd tender the whole lot, and then buy back a chunk of the shares when they have drifted lower?  The other reason to do that is that if you only tender, say, half your shares, you might only end up tendering half of those, so you will have 75% left.   Talk about messy!

[jcw604]

Assuming everyone tender their shares, since Janes already have 1/10, the prorated ratio would be 1/9. However, if less than 10% of people tender their shares, the prorated ratio would be 1. From the trading volume, it seems a significant portion of holder are not trading this stock and most likely they will not tender their shares, since they are those holding it for the long term. JMHO.

[BlueJay2020]

Of course, SIr Corp will presumably not be tendering the 20% they own, so that would make it, at most, 1/7. 

[jcw604]

If they tender that and have more cash, they may be out of the covenant violation, they will have to start paying dividends to us.

[jcw604]

Now, it will be 100%, because they are not even getting all they wanted. I don't know if my tender get accepted, because I am with CIBC and when I phone them this morning, they said they really need 2 days advanced notice and I request is only best effort basis.

[jcw604]

Every time when SIR corp make an announcement regarding buying or cancelation of their buying of the royalty fund, the stock went down. It went down because of the low ball offered price and the cancelation of the low ball supporting level. The market is being irrational but to a certain extent rational, like even though SIR corp is a bidder that is being ignored, it still is a bidder, one that

[lostcauses]

SIR reminds Fund unitholders that the timing of any resumption of monthly distributions is uncertain Well bully us all you want SIR, but I dont think so. Once the restrictions are lifted there is nowhere to hide any more. Not to mention we have Janes (~100k monthly distributions)  and the trustees on our side, which will start legal action due to contract breach in due time.

[BlueJay2020]

Even the terminology they use is misleading.  Aren't the distributions issued by the Fund, and therefore the level and timing is effectively controlled by the majority independent Trustees?  They will no doubr continue to be around 100% of the distributable income of the Fund, whatever that is.   It's the payment of the 6% royalties and interest payments that the Opco

[jcw604]

The other creditors that have higher priority, then the unit holders. However, unless they go bankrupt, they would still need to eventually paid us back with what they owe us, before they can bank the money into their profits. It is a sad story more for them than us, because they are the last one in the priority list.

[lostcauses]

Have to disagree, its under contractual agreement. If you are renting an apartment you pay the utilities bill only, not your landlord because they are lower priority to you? SIR reminds Fund unitholders that the timing of any resumption of monthly distributions is uncertain What they should have said: SIR naturally resumes unitholders distributions as soon as COVID restrictions are

[jcw604]

You have to option to keep your distribution but let the bank unforgive their violation of the covenant. The trustee have on behalf of us probably allow them to deferred the distribution. Once they met the covenant with the other lender, they will have to pay us back.