Q: Can you comment on the Ewing Morris offer ;with conditions, at $3.80? The offer can be withdrawn anytime prior to closing. Of course you do not know how fragile the offer is but any comments would be appreciated. I own BTB.UN long term so taxable when sold. Thank you.
5i Research Answer:
It is effectively a 'mini-tender' offer which is not that uncommon but typically these are done at a discount (to try and trick holders into selling cheaply). This is, at least, at a small premium. Ewing is essentially saying they want to own 8M units, but can't buy that many in the regular market without impacting price. For investors who want to sell and need liquidity, it is an OK deal. But it is not a full offer, but at least is a good sign of support. We would not do anything here.