Post by
RetailRube on Mar 18, 2021 9:12pm
Other Stuff I Found
Per Sedi, reporting insiders (officers, directors and the Estate of the Late J.R.Shaw) do not own ANY preference shares. I assume the reason the Shaw Family will receive a combination of cash and Rogers shares in the deal is for Estate windup purposes. It would be very hard for the Executors for the Estate to find a buyer for all those "A" shares when they are so thinly traded. The Estate needs cash for its shares.
Per the 2020 annual report, there are currently about 10 million SJR.PR.A shares and 2 million SJR.PR.B shares. This costs $300 million to redeem. That is about 1.4% of the cost to Rogers to buy all the Common and Preferred shares. Leaving the pref shares outstanding after the deal closes starts looking like a nuisance. I think it is unlikely Rogers lets the pref shares survive the takeover. I don't understand why Cenovus did this with the Husky pref shares (as someone posted). To not redeem them means you must continue to produce audited financial statements for Shaw. Your accountants would hate you.
I also checked Morningstar for key owners of the pref shares. There are not too many Mutual Funds holding them, certainly nobody with a big position. My guess is the key owners are mostly insurance companies.