GREY:CMHXF - Post by User
Post by
janeintorontoon Sep 12, 2017 2:37pm
304 Views
Post# 26686156
Share repurchase - not so good for us
Share repurchase - not so good for usCMH was already a very small cap stock, barely $100mm (24.6mm shs @$5). Worse still, the public float was just over half that. Not exactly of much interest to institutions. If CMH buys all 6 million shares they are looking for from pubic shareholders (the offer memo says the insiders aren't selling), insiders will control 49%, Sonnenfeldt another 13%, and the public float will only be ~7mm shares or 37% or $35mm.
CMH got a TSX exemption from the requirement to obtain a formal valuation based on CMH's argument that the shares' market would not be materially less liquid than it was before!!! Seriously??
I think this is just a creeping creepy takeover. Yes? No? I'm still mulling it. The offer expires 4 October.
[Generous ratings are always appreciated.]