Q: I seem to recall OTEX being included in the past on your list of companies that were possible takeover targets? If that was true once, do you still see the possibility that the “assets” of the company would be desirable to someone today at it’s current valuation?
5i Research Answer:
Yes; we would still consider it a target, but note we have thought this for at least 10 years. At 7X earnings, nearly every other big tech company globally now has a higher valuation. It remains highly profitable with good cash flow. A privatization would at minimum save the 3.23% dividend (i.e it would not have to be paid anymore). We are sure long-suffering shareholders would welcome a deal.