Two days ago I wrote about the EXFO (NASDAQ:EXFO) going private transaction that had as biggest risk the potential that minority shareholders could block the transaction. I thought that it was more or less a done deal after the chairman bumped the price by a token amount, and got support from ISS and some of the biggest minority shareholders. Nevertheless, I would have expected a decent amount of grumpy shareholders to vote against the deal. But apparently even I was too pessimistic about that. In the end just 66.8% of the outstanding subordinate shares voted at the meeting, and the deal was overwhelmingly approved with 91% of the votes cast in favor. I would never call investing easy, but sometimes it can certainly look like that!
Disclosure
Author is long EXFO
Great call.
CMO merger is sorta interesting. If you assume everything will work out as forecasted it’s a 10-15% return.
Yeah, except I doubt that the new entity will trade at book value. Maybe you can generate a decent return, but requires a leap of faith.
Have you looked at SOLY? Spread is blowing out. It is a small deal ($550m), regulatory risk should be contained (famous last words), closing not that far off (Q4).
Was not really on my radar, but will take a look, spread looks big.