Just a quick update on the whole KEYReit situation – so it looks like Huntingdon Capital has bailed out of the takeover talks leaving me to deal with the Plazacorp offer of $8.35 / share in a cash/stock deal.
Some additional good news is that the largest shareholder has decided to take his take all in shares; leaving more money for the rest of us. There’s been also some additional news that has comforted my view of Plazacorp – they are in the process of listing on the TSX. However, the share price still makes the cash/stock deal valued at around $8.16 instead of $8.35.
For laziness, I decided to sell my wife’s and mom’s shares at the current market price – mostly because their accounts are at a different brokerage firm than mine and dealing with all the circulars that have been mailed is becoming a hassle. The $0.20/share difference is not that much relative to the gain they’ve already experienced from the take-over – especially since I have not yet figured out what to do with the offer. While I am looking for a replacement REIT for them, I have put the proceeds into some other REITs (which may end up being their permanent home):
- BMO Equal Weights REIT (ZRE) – slowly trying to get my mom’s portfolio to follow the Canadian Couch Potato’s model portfolios but with a small percentage allocated to picks from yours truly.
- Dundee International REIT (DI.UN)
- Retrocomm Mid-Market REIT (RMM.UN)
As for me, I still have until mid-May to decide.