Enbridge Income Fund Holdings Inc. EBGUF

RE:RE:RE:RE:RE:Just too be clear on this offer?

[TickerTwit]

When buyouts are worked out, they don't begin with ratios. They begin with valuations. The 27.98+5%=29.38 came first, but the wording in the NR could, mistakenly, be taken to imply that the ratio preceded the valuation and dictated the premium. The wording is not incorrect, but it is weak. There is at least one commentor here who took it the wrong way and continues to be confused (his wording), although I'm beginning to wonder if he is faking it for some trolling value.
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rk67 wrote:
The wording in the NR was fine:

Under today's restructuring proposal:

• ENF shareholders will receive 0.7029 common shares of Enbridge per ENF share, representing a value of CAN$29.38 per ENF share, based on the closing price of Enbridge common shares on the TSX on May 16, 2018 , reflecting a 5% premium to the closing price of ENF's common shares on the TSX on May 16, 2018 .

"WILL RECEIVE 0.7029" is the action part. "REPRESENTING A VALUE OF CAN$29.38 PER ENF SHARE, BASED ON THE BLAH BLAH BLAH" is the "oh by the way" part.

The key word is "representing", not "based on".

TickerTwit wrote: The wording in the NR could have been better. The offer was 29.38, which includes a 5% premium on the May/16 closing price. The conversion ratio is a consequence of the offer.
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soundandfury wrote:

marcrobert wrote: No, you get .70 shares of enb, price irrelevant, they will both move in lockstep now.

the press release was quite confuseing? It said .7029 of an embridge share for a cd value of 29.38.......so confused...lol