WTE.UN volumesas described in the National Post
Westshore volumes What are we to make of the huge increase in the volume of trading in the units of Westshore Terminals Income Fund on Friday, the same day that unitholders were issued rights as part of an upcoming financing?
The volume was 2.07 million units or more than eight times the daily volume over the past six months. Of that amount there were four blocks of 1.9 million units. In all four cases the firm doing the buying was anonymous, while the seller was Blackmont Capital.
"Who is selling?" wondered one unit holder who added that "very large volume" was available at $12 per unit. His analysis indicates that 392,200 units were available at $12 and that those units were offered by four sellers. "These are not small retail investors." he said.
This unit holder speculated that the sellers on Friday could be investor who stands to receive a "lot of rights" in the rights offering. In that offering, unit holders -- provided they have 36 rights -- are required to ante up $10.45 to receive a new unit.
"Somebody who is going to get a lot of units at $10.45 selling them at $12," he ventured.
This unit holder, who did a little buying himself on Friday, dismissed the notion that a private equity buyer was accumulating units. "If it has been sniffed out that there is a potential private equity buyer, then I would not expect such a large volume of units to be available at $12," he said.
Westshore's $20-million rights offering is controversial because it is occurring at the same time as a private $20-million deal has been given to Jim Pattison Developments, its largest shareholder. In effect, one shareholder is being given a special deal for reasons that haven't been adequately explained.