GREY:EBGUF - Post by User
Post by
casperdogon May 27, 2018 2:27pm
374 Views
Post# 28086200
Lack of support
Lack of supportAs most of us here are income investors and will be looking to replace this holding with somthing like it down the road if the deal is compleated. I thought I might remind us all of a few statemets that have been made.Below are quotes from Barry Critchleys artical in the Financialpost.
Typically when one company is aquiring another (even if its a related party) a meaningful premium in the affected stock price is offered and is generally in the 20 per-cent to 30-per-cent range. Next, There doesent appear to be a need to bring ENF in-house. Given that there are no negative implications to ENF from the U.S. tax changes, there is no need to restructure the Cnd. unit. If ENB wants to buy the unit ( whose ability to cost-effectively raise capital has deteriorated, according to ENB) then, runs the arument, offer sharehoulers a reasonable premiun. The final point is optics- and they are pretty strong. ENB is planning to buy back the ENF shares at a lower price than it sold it sold the same shares at in April 2017, Then it offloaded 17,348 million shares at 33.15 a share, based on the fixed exchange ratio and the share prices at the timeof the announcement, the current offer works out to 29.38 a share. Maybe opportunism- given that retail investors are large owners- is the real motivation behind buying in the Cnd. unit. End quote. If nothing more this does speak to the corporate conscience of ENB.