Q: Onex intends to convert its MVS into SVS, on a one-for-one basis. With your financial experience, what do you think can be behind this move?
5i Research Answer:
Investors tend to discount companies with multi-voting shares, so Onex may simply want to see a higher valuation on its shares. There has been a recent trend towards conversion, and many investors will not buy multi-voting companies. It is also good that Onex is not taking a premium on conversion, as is comment (as MV shares are worth more). Another reason of course is that Onex may simply want to make it easier if it wanted to sell its CLS shares at some point.