Q: Peter; I just received the TVK info re upcoming shareholders meeting. I wasn’t aware that two directors/ shareholders held such large positions. Obviously they could never sell into the market that trades maybe 10,000+- a day. It’s close to $50.00 this am - THANK YOU- my question is do you think there may be a secondary issue of shares by these two ? It would also provide more liquidity- which may attract institutional interest- and help estate planning for the two.? Thanks.
Rod
Rod
5i Research Answer:
We can't really speak for them, but note there has been very little insider selling at all over the years. Liquidity could be improved, but since the company has debt we would probably expect a treasury stock issue before we would expect a secondary issue. In scenarios such as these, insiders (if they did want to sell) might look to a takeover for shares, as there can be tax advantages in such deals (capital gains tax deferral if it is a Canadian company doing the buying).