Q: Could you please provide your opinion on Onex Corporation's offer to repurchase for cancellation up to $400,000,000 of its subordinate voting shares. Would you sell or hold at this time?
Thank you so much!
Thank you so much!
5i Research Answer:
The Dutch auction price is $105 to $112, and with the stock near $114 it may not get a lot of shares submitted to the offer. But the stock is cheap, and ONEX has the capital to do this and reduce its number of shares outstanding. Generally, we do not like tendering to such deals. The company knows its business more than investors, and at its current valuation finds the stock attractive, more so than some of its M&A opportunities. We would hold.