TSX:MRT.DB.A - Post by User
Comment by
Malpeque2on Feb 19, 2021 11:44am
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Post# 32609916
RE:Something very strange
RE:Something very strangeThe debentures mature very soon. End of year. Looks like they will be paid off at par. The risk was that post Covid that the debentures would be paid in shares or maybe even default. Depending on how bas Covid got.
The risk is Sahi can give you shares instead of cash on those maturing debentures things. I doubt he does this.
Why issue more shares IF you believe the shares are way undervalued. Better to convert the debt into cash payment and REFI at lower rates IF you can.
IMO Sahi plays for long term. He has been taking this company private slowly for a decade.
Reducing the divie and keeping the DRIP still allows MRC to accumulate shares on the DRIP, and frees up more capital for MRT to actually implement the Buyback. The drip and the MRT buyback in the open market allow SAHI to control more of the economic value or percentage ownerhsip of the MRT entity over time. THus, make the eventual take private price that MRC would have to pay the public shareholders cheaper.
Lets see if Sahi has MRT Actually repurchase shares. 2020 actual buybacks under the authorization allowed were a JOKE. THere is a big difference between what you say your going to do and the actuall buybacks here for recent past.
Is Sahi a JOKEster ??