Q: Just reading about the takeover of RNW by TA. Not really interested in TA as I need income and the reduction in yield will go from 8.55 down to 1.88% with only 1.03 shares of TA for every share of RNW. My question is if RNW happens to trade above the $13 mark, will it be better to just sell all of those shares if this happens?
Thanks
Jeff
Thanks
Jeff
5i Research Answer:
We are sure some RNW holders will not be happy, but at the end of the day TA already owns more than 60% of the company, and this makes a third party bid very difficult. If it trades above $13 for a few days we would be more interested in holding, but we would not necessarily expect this. For now we think it is worth holding just to see how trading progresses over the next week or so. We would put odds at another bid as very low.