Alpine Global Premier Propertie Message Board
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Tender Offer
Tender offer is for 95% of the NAV per share on the close of business Monday June 18. Offer experies on June 15 unless they decide to extend the offer.
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If I understand the offer they are offering
95% of NAV which today is 6.65 so you would
get 6.31 This is assuming a static situation
until june 18.
But they are paying .05/shr as a dividend
so we are looking at getting approx. 6moths
of dividend early and then not own the stock.
To me it is not worth doing that I will hold
on to the stock and collect my monthly 50$
on my 1000 shares.
That is my take on what I currently know
for what it is worth. Not sure why they
are doing this but it looks to me the
people who will benefit most are those
that keep their shares.
Your take on this is welcomed.
TIA- 1 Reply to blair.wagner
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I don't understand why the stock hasn't gone up in light of the tender offer terms. Buy here with a chance to cash in in a few weeks with a tender price higher. No guarantee your shares will be taken but still attractive in light of todsy's stock price.
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The offer prospectus at item 8 says they will use "cash on hand and proceeds from the sale of portfolio securities..." to pay those who tender.
It may be overly simplistic, but it seems to me if the fund is purchasing shares at 95% of NAV, when in the open market it could buy for less (current discount is about 9%), it can only hurt the overall value of the fund. It also seems to me that the open market discount should start narrowing toward the 5% as the tender end date draws near, otherwise there would be a clear arbitrage opportunity.
I intend to hold and hope for the best. -
The one question I failed to ask and perhaps
someone out there knows.
How are they going to pay for the redeem
shares? Will they be selling stocks to raise the money,which of course would
lower the NAV.
All knowledgeable replies welcomed.
TIA -
I haven't received anything from E-Trade about this yet, any idea how you accept?
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You will have to call them(it getting late)
and tell me of your wishes.
For future ref: switch to TDameritrade.
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