Sir Royalty Income Fund T.SRV.UN

Alternate Symbol(s): SIRZF

Financial Services Asset Management

SIR Royalty Income Fund (the Fund) holds investment in SIR Corp (SIR). The Funds' investment, SIR is engaged in the business of owning and operating full-service restaurants in Canada. SIR has concept restaurant brands, including Jack Astor’s Bar and Grill, Scaddabush Italian Kitchen & Bar, and Canyon Creek Chop House, signature restaurant brands, such as Reds Wine Tavern, Reds Midtown Tavern, Reds Square One, and The Loose Moose, which are used by SIR under a license agreement with SIR Royalty Limited Partnership (the Partnership. The Fund receives distribution income from its investment in the Partnership and interest income from the SIR Loan. The Fund indirectly participates in the revenues generated under the License and Royalty Agreement through its Investment in the Partnership.

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Sir Royalty Income Fund > Increased bid

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Comment by Fabozzion Feb 07, 2021 4:58pm

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Post# 32496856

RE:RE:RE:Increased bid

flamingogold wrote: $4.75 is still waaay too low.

Looking back, SRV's timing of their lowball, stab in the back offer followed on the heels of the Ontario lockdown in a likely move to scare the krap out of shareholders. Yet, all the while they secretly launch a new take out concept, Renegade Chicken Kitchen, likely thanks to not paying distributions... a concept I might add that Janes will also benefit from.

It's good to have someone fighting for us, but remember they are actually fighting for themselves so don't let either of them steal your shares for less than $8

BlueJay2020 wrote: Well, Sir Corp own 20% and Janes another 10%. I doubt there would be anyone else comparable to those two holdings, although the mystery 'third bidder' may also have a significant stake.

I think this is a classic strategy of shaking the tree and seeing how much fruit falls each time. We saw this recently with BPY - the only difference here is that there are multiple players at the table.

SIr Corp is lucky that the terribly slow-rollout of the vaccines in Ontario is buying them a little more time to decide what to do. The good news is that each time Janes increases the offer without getting buyers, it shows Sir Corp what they need to do to get the shares.

I took a small amount off the table on Friday. My cost base is around $2. My only concern from a short-term perspective is that SIR Corp's funding for their initial "offer" may have been based on their ability to basically steal SIR Royalty. Now that that is very unlikely to happen I wonder if they can get funding for something above $5/share ? And the third undisclosed party may very well be opportunistic as well....I mean they likely would have considered $4.75, for example, to be a great offer given a 33% premium to Sir Corp. So there is a reasonable chance that Jane's $4.75 could be the best offer out there. If that's the case I'm happy to hold for the longer-term.