Q: Your thoughts on the sale of Logistec 67$ Per share. When is it excepted to close? Is it wroth buying more with share price this AM at about 64$.
5i Research Answer:
It is a pretty decent bid at $67 for a relatively small company. It is all cash, and at a very good premium to the 20-day average price (prior to the announcement of a strategic review). There is also a $32M 'break fee' which could discourage competing offers. There are also no conditions on the offer. As far as offers go, it is good, and clean. It is expected to close in the 1Q of 2024. The stock is pretty thin, and we would not consider it that great of an arbitrage right now. We think buying of any size would quickly move the stock closer to the bid price. But, we think it is worth holding into the close of the deal, certainly.