TSX:RPR.DB - Post by User
Comment by
TVRon Nov 13, 2024 10:33am
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Post# 36310202
RE:An offer from GA
RE:An offer from GACurrent market cap for SOT.UN is $40 million so somebody like Armoyan or another REIT could potentially take it over for, say, $60 million. Problem is that does not change the precarious financial status of the REIT. The debt issue still has to be dealt with and that is another $200 million'ish in some form. I doubt Armoyan has the level of financial resources for this. Only logical way out I can see is for somebody to get the debenture holders on side for a 100% debt to equity conversion. That would reduce debt by $170 million. It is also a very big ask and I'm not sure it is doable. Then there is the issue of equity dilution if the debentures are converted. The debenture holders would end up owning 75% or more of the REIT which does not seem appealing to any potential buyer who ends up with only a small share of the REIT.
Hope somebody has some financial magic they can work on this... and quickly. Delisting deadline is approaching rapidly.