Reitmans Ord Shs V.RET

Voting non voting spread

[Northforce13]

Bit funny to see the spread widen even further, when pretty much everyone on these boards, present company excluded, feel there should be no spread. 

From the posts lots of people were selling the voting to buy the non voting when the spread was, say, 50c (which seems like a good idea, even to me, though I'm still holding my voting, own both). 

Today the spread blew out to a whopping 1.00.  I wonder if it's because many people have done as described above, and there aren't many sellers of voting shares left... so if people want to own the voting shares, they have to pay up lol.  

Markets can be very funny/peculiar.

I'd probably start trimming my voting to shift to non voting right now too, but I like to hold onto stuff for at least a year before selling.  

Sitting on a big mountain of RET, watching.

GLTA

[Torontojay]

The current spread in terms of market value is $61.5m.  I have no idea why there is such a large spread between the two classes but unless you think your influence as a voter can unlock more market value than the current spread, then I see no point buying the expensive option.  What's the real estate worth again? Hmmm... 

[nozzpack]

This makes no sense as both classes of shares buy you the same ownership in Reitmans as well as receiving all benefits except voting rights. The spead is now about $1,20 . So why pay $1.20 more for the same investment . I sold my RET at a nice profit and replaced them with RET.a. Historically, there is no spread, so it won't be forever ..

[IRAM99]

I agree, the spread seems too large. My two thoughts on this are: 1. There is a fund or funds that are accumulating the voting shares in order to put pressure on management to do things like spinoff the real estate, buyback shares, uplist the stock, pay a dividend etc. The Reitmans family obviously has voting control, but owning a certain percentage of the votes could get you on the board or at

[nozzpack]

The Common shares and Class A non-voting shares of the Company rank equally and pari passu with respect to the right to receive dividends and upon any distribution of the assets of the Company. However, in the case of share dividends, the holders of Class A non-voting shares shall have the right to receive Class A non- voting shares and the holders of Common shares shall have the right to

[pennylane101]

Not unusual to see a spread in share price for companies with a dual class share structure.  In general voting shares trade at a premium over non-voting shares.  Examples include Corby Spirit and Wine, Andrew Peller Ltd and many others.

[nedstar71]

I believe there is somewhere in the range of 6.5 million voting shares that aren't owned by insiders.  Given volume in the past month and a half alone is loosely calculated at 1.7 million it's no wonder they are being driven higher. These 100k + volume days aren't sustainable without moving up the share price substantially.  Then guess what happens when there are 500k volume