Q: Hi, Could you please comment on the secondary offering of $163 mln, for sale of 3.5 mln shares by Mason Capital at an agreed price of $46.55, a bought deal through Scotia.
Does the recent weakness has anything to do with this, in your view ( besides the GS report} ?
Thank You
Does the recent weakness has anything to do with this, in your view ( besides the GS report} ?
Thank You
5i Research Answer:
The timing of the issue is clearly not great, after a decline, but as an insider Mason may have had restrictions going into the quarter. Mason is selling 3.5M shares of the 17.8M shares it owns, so it will still be the largest shareholder. The offering discount is 'reasonable' but optically investors will not like this too much. While anything is possible, we would not read too much into any connection between this and the recent decline.