RE:RE:RE:12.5The SIB documentation seemed to suggest a prompt payment would likely be received Tuesday if the SIB is not oversubscribed or extended.
Page 17 of the Issuer Bid Circular says:
"
In the event of proration of Tendered Units, Dream Office REIT will determine the proration factor and pay for those Tendered Units accepted for payment promptly after the Expiration Time in accordance with this Section 6. However, Dream Office REIT does not expect to be able to announce the final results of any such proration until approximately two Trading Days after the Expiration Time."
Frankie10 wrote: I disagree Reece, Manji does not invest passively - he invests with the intent of sieizing some sort of control/influence. He's, for the most part, tapped out in terms of capital, but with Dream he don't need to disburse additional capital to increase his equity ownership. I think Artis tenders very little, if any at all... that said, I've been very negative/cautious these days about everything, so nothing will surprise me - I've positioned myself defensively, and a large Artis tender would just simply contradict my understand of Manji's intentions.
...we will find out Tuesday (?) whether this has been a gambit by DAM/Cooper to capture greater equity in the entity (my first instinct after phantom distribution PR) or extract liquidity for their other ventures.
Reece1986b wrote: I think we will have ~12.5 million units (the entire SIB Offer) tendered from the public float. I fully expect the SIB to be oversubscribed by whatever amount insiders have chosen to tender. A lot of people who own Dream Office also own Artis, H&R, etc. Many of these REITs have taken a good haircut in the aftermath of the U.S. regional banking system troubles. The Dream Office SIB was a good opportunity to reallocate a portion of one's investment to some other REITs or alternatively to take some money completely out of REITs if someone was uncomfortable with how much money they were down on their REIT investments.
I'm of the opinion that a 'realistic worst case scenario' probably involves a very large tender from both insiders and the public float. Let's say 12.5 million units are tendered from the public float and 12.5 million units are tendered from Artis/Sandpiper/DAM as a worst case scenario. That means the SIB is double-oversubscribed and only 50% of units tendered will be repurchased. That would mean 6.25 million units would be purchased and cancelled from Artis/Sandpiper/DAM and 6.25 million units would be purchased and cancelled from the public float.
The Dream Office 2023 NCIB only allowed for 3.3 million units to be purchased over the course of one entire year and we would be looking at cancelling 6.25 million (or more) units from the public float on Monday, June 19th, 2023. Basically two entire years of NCIB activity as a worst case scenario, approximately 4 years of NCIB activity if Artis/Sandpiper/DAM did not tender at all and maybe 2.5-3.0 years of NCIB activity being cancelled in one single day as the most likely outcome.
Trading over the next few days could certainly be rocky if the SIB is oversubscribed however I think what has been done with this SIB should be very positive long term.
SNAKEYBOY wrote: Think about 12.5 million shares less tradable monday....absolutely nuts, maybe more maybe less. If most of those are not coopers/manji's it should be very choppy and low volume one would think. maybe not immediately as some deadline missers or traders bid it to where they think it should go