Q: I had shares of Jean Coutu. I thought the deal with Metro was that I would get shares of Metro in exchange of PJc. Instead, I got the proceedings of the sale on my Disnat account. I surely missed the document where I would have been able to select a different choice and avoid part of the capital gain at this moment. I would like to put that money at work. What would be a good choice from the BE or Income portfolios to replace PJc? The weight of Metro, Loblaws and EMP.A is already 10% of my portfolio.
Q: Hello 5i team,
Since I think the probability of a competing bid is close to zero, and the closing ability of the buyer is good, I want to understand the price at which PJC.A shares trade.
The facts: each shareholder can choose between (1) cash = 24,50$ or 0,61006 MRU (currently 26,09$); the aggregate consideration will be 75% in cash + 25% in MRU shares. Currently, MRU = 42,78 and PJC = 24,83 =>75%+25% = 24,90$.
Can I expect PJC shares to trade directly on this 75% & 25% prorata? Will the Coutu family exclusively get shares (they will get 2 seats on the board)? If yes, than there won't be that many shares of MRU available for the rest of PJC shareholders. Today, no PJC shareholders would choose to be paid 24,50$ cash, all would choose 100% MRU shares (price 42,78 x 0,61006= 26,10$). If I have no particular desire to own MRU share, and if I want to maximize my wealth, what should I do, if I cannot forecast MRU share price? The difference between the current price of PJC.A shares 24,83$ and the 75%+25% sum 24,90$ is very small for a transaction that will close between March and June 2018
Thank you, Eric
Since I think the probability of a competing bid is close to zero, and the closing ability of the buyer is good, I want to understand the price at which PJC.A shares trade.
The facts: each shareholder can choose between (1) cash = 24,50$ or 0,61006 MRU (currently 26,09$); the aggregate consideration will be 75% in cash + 25% in MRU shares. Currently, MRU = 42,78 and PJC = 24,83 =>75%+25% = 24,90$.
Can I expect PJC shares to trade directly on this 75% & 25% prorata? Will the Coutu family exclusively get shares (they will get 2 seats on the board)? If yes, than there won't be that many shares of MRU available for the rest of PJC shareholders. Today, no PJC shareholders would choose to be paid 24,50$ cash, all would choose 100% MRU shares (price 42,78 x 0,61006= 26,10$). If I have no particular desire to own MRU share, and if I want to maximize my wealth, what should I do, if I cannot forecast MRU share price? The difference between the current price of PJC.A shares 24,83$ and the 75%+25% sum 24,90$ is very small for a transaction that will close between March and June 2018
Thank you, Eric
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Jean Coutu Group (PJC) Inc. (The) Class A Subordinate Voting Shares (PJC.A)
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Liminal BioSciences Inc. (LMNL)
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CRH Medical Corporation (CRH)
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Knight Therapeutics Inc. (GUD)
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Freshii Inc. Class A Subordinate Voting Shares (FRII)
Q: Hello Peter,
My Frescii shares have tumbled 50% and am not sure if it is worth holding. What is your opinion? Do i hold or replace it with prometic or crh medical or for longer term knight (gud). With respect to Jean Coutu, would you expect the stock to go above 24.50 at a later point (higher offer) as my average cost is about that range or simply let the merger go through and I will get cash and some metro stock. Thank you.
My Frescii shares have tumbled 50% and am not sure if it is worth holding. What is your opinion? Do i hold or replace it with prometic or crh medical or for longer term knight (gud). With respect to Jean Coutu, would you expect the stock to go above 24.50 at a later point (higher offer) as my average cost is about that range or simply let the merger go through and I will get cash and some metro stock. Thank you.