Q: Hi Peter, I am a long time First Capital Reit holder. It is a full position for me. With the announcement of the Acquisition what would you recommend. The share price is $23.64 and the deal is valued at $24.40. I would appreciate your professional opinion. It looks like quite a gap between two prices.
5i Research Answer:
The deal is $19.24 cash plus 0.3186 units of CHP.UN so the discount reflects deal risk and price variability of CHP.UN. It is a decent transaction. Odds of a third party entering are low, but not 0%. Several layers of approval are needed to close. We would HOLD, and tender to the offer when the disclosure comes out.