Post by
Canoutchie on Aug 22, 2016 9:22pm
Loblaw's purchase agreement.
I've owned QHR for a while. Luckily it is in my TFSA, so this is a nice win.
Normally, I would sell and move on, but my gut is telling me to hold for a bit.
I listened to the conference call this afternoon. There were only two questions. One was a curious question about whether it was 23% or 25% of shareholders tendering shares to the Loblaws offer (caller mentioned that reports on this differed). CEO answered it was rounding (i.e. who cares).
The second question asked about whether Telus had made an offer, or if it was involved with a possible counter-offer. CEO responded that he was not able to comment on any talks with Telus. With that, the brief call was ended.
I believe he (CEO) mentioned that it would cost QHR $6 million to break the deal with Loblaws. I'm presuming this would only happen if there were a higher bid, possibly from Telus or another company. Apart from that, this deal looks like it will go ahead.
I don't know enough about the Telus involvement to say if anything further might happen, but I believe the company is worth at least $3.10, based on the work Paradigm did in helping to negotiate this deal, so I'm planning to hold my few QHR shares, just for the time being.
Good luck to all