TSX:EIT.PR.A - Post by User
Comment by
Ticker28on Oct 10, 2007 11:51pm
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Post# 13552196
RE: buybacks
RE: buybacks"Suppose today under the Issuer Bid the Manager sells off $1,000,000 of our EIT assets and with the cash buys back and cancels 140,450 EIT units at $6.00.
Suppose today (or tomorrow) under the Exchange Offer, the Manager accepts from us $1,000,000 worth of trusts and issues us 140,450 treasury units at $6.00.
It's neutral. A net buy back would benefit our NAV"
I disagree. In my own opinion I view the exchange offer as adding to the outstanding units, yes true but remember it also adds to the Trusts asset value as their portfolio increases in size. On the other hand the buybacks only lessen outstanding shares but does not result in them selling any portfolio holdings. Thus no reduction to the NAV of the units but rather a reward to shareholders.
Thats my thought. Please do your own DD.
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