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clock Created with Sketch. 24/04/24
14:11
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Originally posted by 2ic:
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The BSE discount to TO offer and EF's drop post offer are both expected, as some others have said. In the simplest terms, the acquirer nearly always takes a hit because the market is nervous they have overpaid and a lot of sellers will hit the stock once script is swapped into the TO implementation. The target has many sellers taking profits to invest elsewhere, not worried about leaving a bit on the table and/or worried about the Scheme being blocked by regulators or vote etc.
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Not sure if anyone has already factored in the duration of time between the propsed special dividend payment and the conversion of securities in BSE into EF. If the usual scenario takes place everywhere else on the ASX, BSE price will drop by the 6.5c dividend price after the ex date. So this will push the price hypothetically back down to approx 18c post dividend, creating yet another opportunity for investors to buy more shares in BSE before the final conversion into EF takes place. Is this also your understanding?
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