Q: Do you recommend holding Enerplus until the close of the deal ? Are there restrictions on ERF insiders and employees on selling their CHRD shares as soon as the deal closes ? If I do not stick with CHRD, I would like to keep these funds in O&G. What are your favorites in this sector. I own WCP, CPG, TOU and the pipelines. ERF is currently held in a TFSA. Thanks.
5i Research Answer:
In filings, we could not find reference to any share restrictions to executives, but insiders only hold 1.6% of ERF and considering the size of CHRD any selling would not be material. Executives would have new contracts but details of such were not released in the circular. At currrent prices, the value of ERF is essentially exact the value of CHRD shares to be received in the deal, and we would now be comfortable switching into CNQ or SU for different energy exposure to the companies listed in the question. But, the special dividend 0f 23c is payable soon, so shareholders who sell on or after May 30 will get this dividend.