Q: I see there is a US law firm investigating the proposed takeover price for Tricon. They are looking for investors to talk to. Is this a usual occurrence?
What do you think about the US$11.25 per share valuation being offered?
This news only appears on the USD ticker’s page here on 5i (?).
https://ksfcounsel.com/cases/nyse-tcn/
What do you think about the US$11.25 per share valuation being offered?
This news only appears on the USD ticker’s page here on 5i (?).
https://ksfcounsel.com/cases/nyse-tcn/
5i Research Answer:
In any takeover there will always be some unhappy shareholders, wanting 'more'. Lawsuits are fairly common. It is always a question of valuation. But in the abscence of other buyers paying more, there is not much legal ground to stand on. We would generally ignore these. If one is not happy with a deal, they can always vote against it. The deal is all cash, and was at a 26% premium. The premium we think could have been a bit higher, but we doubt other parties want to fight Blackstone, and it is a cyclical industry with high rates adding some risks. Overall we are OK with the price.