Q: Hello 5i, as there is a takeover offer for Melcor REIT could you offer an opinion as to is the offer a fair price for current shareholders and the possibility of a competing take over offer.
5i Research Answer:
It is an all-cash bid, at a 61% premium to the 30-day average price, made by a 55% shareholder. We think the odds of another party entering the fray are pretty much zero. MR.UN is also quite small and there would likely be few interested parties anyway. This takeover has been a very long time coming and we think this offer will do it.