It is a difficult exercise as the units are already up 34% this year, and a strategic or motivated buyer may be willing to pay more than others. HR says it is in discussion with 'several parties' and this can result in better offers. Still, even with the price rise the units are only 10X cash flow. We doubt management would entertain bids below 12X. So a range might be $14.50 to $16.00 in a bidding war scenario. BUT...this is not to imply this will be the takeover range, and it is entirely possible nothing at all happens. Units have been as high as $20, historically, but also below $6 in the depths of Covid. There is enough potential to keep holding, though, certainly.
5i Research Answer: