So, if the exchange for WAM shares happened early this week and we could sell WAM straight away at say 222 cents, the theoretical value of WIC is 140.1 plus 7.5% , which is 150.6 per share. OZG is a similar situation with theoretical value of 38.6 cents.
Yet, both WIC and OZG are selling a about 15% below that theoretical value. This is a considerable discount.
It looks like there are not many people taking the risk that this deal will conclude. Perhaps there is a general bearishness on the market but as @peejay2 has said, the lower bound on NTA looks fairly difficult to breach. I would also add that EZL has agreed to the merger and holds 26.5% of WIC and 40.6% of OZG. Add to that, WAR (from Wilson's stable) has significant holdings in both companies. Why isn't WAR buying more shares - there has not been a substantial holdings notice recently to say they have. They have the cash but why are they turning down an easy 15% gain in their stated objectives? Optics?
Am I missing something?
WIC Price at posting:
$1.31 Sentiment: Buy Disclosure: Held
