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Big Banc Split Corp T.BNK

Alternate Symbol(s):  T.BNK.PR.A

The investment objectives for the Preferred Shares are to provide their holders with fixed cumulative preferential monthly cash distributions in the amount of $0.05 per Preferred Share ($0.60 per annum or 6.0% per annum on the issue price of $10.00 per Preferred Share) until November 30, 2023 (the Maturity Date) and to return the original issue price of $10.00 to holders on the Maturity Date. The Company will invest on an approximately equally-weighted basis in Portfolio Shares of the following publicly traded Canadian banks: Bank of Montreal; Canadian Imperial Bank of Commerce; National Bank of Canada; Royal Bank of Canada; The Bank of Nova Scotia; and The Toronto-Dominion Bank. The Portfolio will generally be rebalanced on a quarterly basis, starting on September 30, 2020, so that as soon as practicable after each calendar quarter the Portfolio Shares will be held on an approximately equal weight basis.


TSX:BNK - Post by User

Comment by Gcreamyon Mar 21, 2016 6:25pm
211 Views
Post# 24685568

RE:RE:RE:net 1.75$/share

RE:RE:RE:net 1.75$/shareI get that your just trying to understand exactly what is going on so don’t worry about that. There will be no lawsuit if the deal goes through; the shareholders will get paid $2.20 per share. 

The $1.75 net could just be referring to Geo-Jade's total cost per share net of debt but they are paying $575 mill ($2.20/share) for the entire business, debt included.

Why is it trading at $1.73???
1) People are taking guaranteed profit. Even if they believe the deal is going through, they want to lock in profits now and not have to deal with the slim chance of the deal falling through
2) People are confused as they don’t understand exactly what is going on. When there is confusion (like the whole $1.75 net price), people will sell their positions or wait on the sidelines until they get answers. 
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