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Alpine Global Premier Propertie Message Board

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  • skynet2point0 skynet2point0 May 26, 2012 10:35 AM Flag

    Tender Offer

    Something to consider from Page 9 of the offer ...

    THE OFFER MAY HAVE CERTAIN ADVERSE CONSEQUENCES FOR PARTICIPATING AND NON-PARTICIPATING SHAREHOLDERS. PLEASE SEE BELOW.

    Effects on the Fund. The purchase of shares pursuant to the Offer will have the effect of increasing the proportionate interest in the Fund of non-participating shareholders and reducing the NAV of the Fund. This reduction of the NAV of the Fund will likely cause the ratio of the Fund's expenses to its NAV to increase. Additionally, a reduction in the number of shares issued and outstanding may reduce the liquidity and the depth of the trading market for the Fund shares...

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    • Its true overall NAV will decline with the tender offer but NAV per share will increase as a larger proportion of shares outstanding will be retired than the proportion of assets than will be consumed.

      I personally think the 95$ ratio is fair as those who don't tender will benefit by the NAV/sh increase but will be hurt by the small increase in proportionate expenses. Thus this should be a rough balance. There's no need to tender if one doesn't want to bother but if one is willing to tender the higher price will benefit those shareholders to the extent that the shares get accepted.

      The ratio of acceptance should be higher than normal since there is no obvious injury to those that don't tender. I am willing to guess that more than 60% of shares tendered will get accepted. Most of the time acceptance of 15% at 98% NAV would probably be less than 30% and non tendering shareholders would wind up getting hurt to boot.

 
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