Q: The pending deal to take CI Financial private, 'may' close in Q2-2025, at $32/share.
Would you recommend shareholders hold for now, or sell it if they already are in the positive on this holding.
Would you recommend shareholders hold for now, or sell it if they already are in the positive on this holding.
5i Research Answer:
Under the takeover, the last dividend will be paid in April 2025 as it has already been declared. We highly doubt any new buyers will emerge who will want to compete with the deep-pocketed buyer. There is 3.06% left on the table at current prices. Considering the timeframe and low probability of a competing offer, we would be comfortable selling now to raise capital for an alternative. If taxes apply, we would be fine waiting until the tax year rollover (anytime after Dec 31 for settlement in 2025).