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ARC Resources Ltd. (ARX $30.58)
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Shell PLC American Depositary Shares (each representing two (2)) (SHEL $83.97)
Q: Why is arx dropping if they are getting 32.80 a share. Please explain the details of the transaction . Thank you
5i Research Answer:
The deal is for C$8.20 cash and 0.4025 SHEL shares. Shares represent 75% of the compensation so ARX shares will now move with SHEL shares. Today, the total value of the offer is about 3% higher than current prices, representing timevalue to closing and deal risk. SHEL has dropped more than 6% in the past three days which is why ARX has declined.