IN the bidding process for new contracts, since the building of new prisons is capitol intensive,it will be benificial to be able to offer, either NO COST TO GOVERMENT, by building the prison yourselph owning it in return for the right to run it for a 15 to 20 year contract... this reit offering will bring in an initial 300, mill lets say.. when cxc started its reit it went frome about $20 to 40 per share within a few months, a possible profitable investment to buy shares on the first day of trading!!!!!!!!!!!!!
Ok - I see the advantage, but what about the shareholders here. Are shares being spun off to WHC shareholders? or is it a typical sale by the company of e.g. minority interest? That way its asset gets valued. Retention of appreciating asset is how the shareholder is benefited indirectly.