"The Partnership will not receive any proceeds from the sale of the common units in the Offering and the Offering has no dilutive effect as the number of common units outstanding will remain unchanged after the Offering."
Could someone explain this statement to me? It sounds like they are offering a stock sale and yet, they say they will receive none of the money from it nor will there be a net change in number of shares outstanding. I'm a stock novice and if someone could put this statement in layman's terms, I'd appreciate it.
This is just a trasaction between two entities. One wanted to sell some holdings and another wanted in. The buyers would only get in with a discount to share price because the shares are not as liquid if they aren't on the open market. Because of that, we have an opportunity to get in at the same price as someone with a lot more information and cash.
The sell-off was a knee jerk reaction for those who didn't read the press release. This will make no difference in the calculation of EPS. I am buying on this weakness. This sale might actually be good for the stock as more outside holders may demand that the company be dismantled by separating the retail store operations from the other operations.