Why buy TMAC at $2.20 today?With court approval now in hand, it would appear that the Angico Eagle takeover of TMAC will proceed, with the $2.20 cash payout per share targeted for February 2, 2021.
This then begs the question as to why would investors pay $2.20 today (plus commissions) to acquire a stock that will payout $2.20 in 10 days time and then be delisted from teh TSX?
I can only conclude that there are those who still believe a additional last minute unsolicited bid might be in the works, one that Angico Eagle would have to match (as is its perogative under the current Plan of Arrangement) or if beyond their high point valuation, would allow the new bidder to take over the deal. I believe it is this later potential that is continuing to make a market for TMAC shares - that for any last minute bid to be successful, it would have to be priced at a level that would see Angico Eagle walk away - likely something north of $4 per share. That represents a logical reason to buy and hold a share for 10 days with no risk to your investment if the late bidder does not appear.
Any other suggestions from other reader - I would welcome the discussion?