Q: July 14th I asked a question on pipe and bought a chunk of them for growth and the initiated dividend.
They have been bought by Strathcona Resources shortly after that!
I am a bit unsure of what will transpire now and would like your opinion of the upcoming meeting in September and what should I do? Sell now or hold?
Thanx Gary
They have been bought by Strathcona Resources shortly after that!
I am a bit unsure of what will transpire now and would like your opinion of the upcoming meeting in September and what should I do? Sell now or hold?
Thanx Gary
5i Research Answer:
Strathcona is currenty private, but will become public with this transaction. PIPE shareholders will own 9% of the combined company (to be called Strathcona). Each PIPE share will be exchanged for 0.067967 new shares of the combined company. Strathcona will become the fifth largest oil company in Canada and we think the combined company will look pretty good. We expect that shareholders will approve the merger at the meeting and we would be comfortable holding the shares, provided an investor remains comfortable with the energy sector overall.