Author Topic: MPH.TO - Medicure  (Read 9226 times)

Philbert77

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Re: MPH.TO - Medicure
« Reply #30 on: November 13, 2019, 02:49:46 PM »
I think I may tender some. It is too large a position for my level of confidence in them. This whole process seems to have taken far too long.


no_free_lunch

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Re: MPH.TO - Medicure
« Reply #31 on: November 19, 2019, 10:44:21 AM »
The tender offer is out on Sedar.  It is for $6.5 and 4m shares.  If over-subscribed, they will pro-rate the repurchases.  The offer expires Dec 19.

YVRtrader

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Re: MPH.TO - Medicure
« Reply #32 on: November 19, 2019, 01:41:02 PM »
The offer will be very significantly oversubscribed. 

From the issuer bid circular:

To the knowledge of the Company, after reasonable inquiry, as of the date hereof, the following Disclosable Persons intend to tender Common Shares pursuant to the Offer. Following the date of this Circular, any Disclosable Person may or may not, in their sole discretion, tender all or any portion of their Common Shares pursuant to the Offer.
Name
MM Asset Management Inc.
PenderFund Capital Management Ltd.
# of Shares/% of Outstanding Shares
3,977,145     26.9%
1,898,350     12.8%

YVRtrader

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Re: MPH.TO - Medicure
« Reply #33 on: November 19, 2019, 01:44:14 PM »
Might as well tender every share you own.  You'll end up selling a fraction of the shares you tender (at $6.50) and should have plenty of opportunity to buy back under $5. 

I think I may tender some. It is too large a position for my level of confidence in them. This whole process seems to have taken far too long.

Philbert77

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Re: MPH.TO - Medicure
« Reply #34 on: November 19, 2019, 04:38:18 PM »
That's a good point. I hadn't thought of that option (buying back in on the cheap).

YVRtrader

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Re: MPH.TO - Medicure
« Reply #35 on: November 19, 2019, 05:56:25 PM »
FWIW, I estimate that those tendering their shares will be prorated to get $6.50 for approx 40% of their tendered shares.

Assumptions:
The two largest shareholders will tender all of their shares (39.7% owners)
Albert Friesen, CEO, (16.3% owner) will not tender any shares
Retail holders will tender two thirds of remaining shares (estimate)

I don't expect many people to try and arb this offering because it will be very difficult to unload the remaining 60% of their shares on such an illiquid stock.

Earnings before the tender expiry is notable.

Seems that proceeds from the offering will not be taxed as a dividend for Canadian residents.

"An Individual Resident Holder who sells Common Shares to the Company pursuant to the Offer will be deemed to receive a taxable dividend equal to the amount by which (i) the aggregate Purchase Price received by the Individual Resident Holder for the Common Shares so sold exceeds (ii) the paid-up capital of such Common Shares for Canadian federal income tax purposes. Any such deemed dividend will be subject to the normal dividend gross-up and tax credit rules generally applicable to taxable dividends received from a taxable Canadian corporation, including the enhanced dividend gross-up and tax credit if such dividends were to be designated as "eligible dividends" by the Company. The Company has informed counsel that the Company expects that the paid-up capital of each Common Share will exceed the Purchase Price. Accordingly, the Company does not expect that any Individual Resident Holder will be deemed to receive a taxable dividend on the sale of Common Shares pursuant to the Offer."