Q: Good morning,
Could you please help explain the best current course of action with respect to the tender of Filo shares - $33.00 cash or Lundin shares or combination cash and shares? Is it now possible to receive more than $33 a share?
Thank you for your help.
Could you please help explain the best current course of action with respect to the tender of Filo shares - $33.00 cash or Lundin shares or combination cash and shares? Is it now possible to receive more than $33 a share?
Thank you for your help.
5i Research Answer:
The cash component of the deal is capped, so all investors choosing cash will still get a combination of cash and LUN shares. The combined cash and share value today is still about 5% less than the value that would be received at closing. This discount represents any deal risk (which we think is low) and time. We think LUN is one of the best managed companies in the sector, and we would be comfortable taking all LUN shares here, if an investor remains comfortable with their sector position.