Q: I just saw a question on transcontinental. It seems like they are selling their packaging business, which I think they bought in 2019 as the new big thing. My question on it is whether the stock price generally falls following a payout and, if this is the case, you might not be any better off in waiting for the payout than selling now?
Thanks
Thanks
5i Research Answer:
With an expected $20/share payout, there will be lots of eyes on this one. However, the company will be quite small post-payout, and its future not certain. Management plans to focus on its smaller remaining businesses and perhaps look for new ventures. We would like to review the offering circular which will be out before December 19. But for now we would not see it as that attractive as a dividend-arbitrage opportunity.