By the way, they might have to pay taxes on the profit on the sales of the subsidiaries. I think the tax rate is 20%, and most of the subsidiary sales is profit so the net dividend payout from the sales of the two subsidiaries might be around 5.5 USD.
I looked at the 14D of February 4, 2013. It said the purchase price per ADR is about 90.5 plus the compensation you are writing about. Provida says it will be 25 M, so together it's 91.68 per share. On top of that they have paid the annual dividend, about 7.5 USD per ADS which is about three quarters of net income.
They will also pay as dividend the proceeds of the two sales last November and January, which is about 8.6 USD per share. Of course we have to pay some Chilean dividend tax. I wonder whether they have paid this subsidiary sales dividend already or not?
What are we missing? Especially at the current even lower share price. I can only imagine the deal is still unlikely to happen. The 14D mentions regulatory approval and Metlife has a large pension business in Chile already. But even then, with the low PE, favorable combination of ROE and PB, and the high payout ratio, the takeover price is probably low.
PVD is being bought out by Met Life (MET), with closing sometime in the 3rd Q. However, prior to the finalization of that action, all cash on hand with PVD plus the proceeds of its sale of its operations in Peru and Mexico will be distributed to stock holders. I hold the stock and will not sell (sale price to MET $92/share) because of the full distribution of all funds to current stockholders.
I am wondering the same way. Ex-dividend is part of the drop. I skimmed over the SEC MET deal and I think compensation is based on a daily average price leading up to the actual closing of the deal. On the other hand it doesn't really make sense for major holders to be selling, unless I missed something in the report. Take a look at the report and I'd be curious if you find something I missed.
Can anybody tell me why the shareprice went down so much? Will PVD still be bought by Metlife? And can anyone confirm a price? I remember that the price was something like 94 per share plus some proceeds from selling some minority interests, so total shareholder value is about 104-105. Can anyone confirm this?