Q: Do you think the takeover price for IIP, announced today, is a good price? The stock is (at the moment) selling at or a bit above the offer price. Apparently the bid can be increased by another buyer, so should I sell or should I wait?
5i Research Answer:
It is an all-cash, friendly offer at a decent premium. But...the board was smart enough to put in a 40 day 'go shop' provision. The stock right now is 1-cent above the offer. There is a break fee of $49M or $79M (before or after the go-shop period). IIP is a solid company with good assets. There is a scarcity of REITs, and with interest rates declining there could be more interest. With only small risks here of closing and only a small premium currently, we would be OK waiting and holding to see how this may play out over the next few weeks.