Q: Do you have an explanation on why aw.un is up so much today?
5i Research Answer:
AW.UN and A&W Food Services of Canada have announced a strategic combination. The two will be combining to become a leading publicly traded quick-service restaurant company. The new structure will allow investors to participate in upside from growth and performance of the entire A&W business, whereas previously, AW.UN's growth and performance was largely limited to the same stores sales growth of existing restaurants in the royalty pool, and did not benefit from the addition of new restaurants to the royalty pool.
We have comments posted on the transaction details.