Q: Could I have your views on the takeover of this company announced this morning. Is this a good offer and are there more offers coming or should I sell this stock and invest the proceed in another company. Are there other Canadian companies that you feel are similar with a good outlook. Many tnx.
5i Research Answer:
We think it is a pretty good offer. The price is a 28% premium to the closing share price on July 10 and a 47% premium to the 90-day volume weighted average. We do not see anything about HRX entertaining more offers but with such a long closing it (March 2025), anything is possible. There is still about 5% left to collect based off the close price. We think one could use it as a high yielding cash option but are comfortable selling if a new investment opportunity arises. MDA can be a suggested replacement.