Q: I own shares of Enerplus (ERF), which is being bought by Chord (CHRD). My questions are: (a) do I need to do something active (i.e., tender the shares) and if so, by what date? (b) since I will receive some CHRD shares as well as cash, does it make sense to have my ERF shares reside in the U.S. side of my brokerage account (while waiting for this transaction to close)?
Ted
Ted
5i Research Answer:
The vote on the deal is May 24; generally, it is better to tender to avoid delays in the share exchange. But if CHRD gets 90%, the balance will be exchanged regardless. Since the CHRD dividend and cash paid in the acquisition is in US dollars, we think it does make sense to hold ERF in a US dollar account if an investor intends to tender.