My read on the current situation is that Samuel Terry Asset Management (STAM) isn't acquiring anymore units on market because the SP is above their offer price ($0.93) and if they buy on market, they have to increase their offer to highest price they pa. For now they're stuck at around 38%.
Hancock & Gore (HNG) have been creeping up the register at a price that is higher than STAMs offer price. Will they launch a counter offer?
I feel like the risk/return payoff is probably asymmetric at this point.
Any insight would be greatly appreciated.
Spewing that EDC slipped under my filters, it's right up my alley.
It will super interesting to see how this plays out. Looks like Samuel Terry Asset Management (STAM) will keep buying on market to make the takeover happen. If they buy on market at a price higher than the current offer $0.93, the offer is adjusted to match the highest price they have paid to acquire shares.
I'd say there would still be value for STAM up until about $1. Despite NTA being reported at around $1.10, given the subscale nature of EDC I'd say shareholders should probably take the money and walkaway. FUM is about $300 million which isn't worth much to EDC shareholders. If it was plugged into a bigger platform there would be a few synergies because of the economies of scale.
I've had no time to do DD so will steer clear for now.