Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
Hi there, Thanks for the great on going “down to earth“ comments and advice . Much appreciated. I was looking at buying Aventus Group (AVN) last week then came the merger announcement. I am still keen but wonder which would be the better way to finish up with a holding ? I’m a little confused as to the calculations under the merger proposal. Should a potential investor buy AVN now or the Daily Needs REIT ? Thanks guys – Shane.
Hi Shane,
Retail centre operator AVN has announced plans to merge with Home Consortium (HMC) and HomeCo Daily Needs REIT (HDN), the deal gives AVN 2.2 HDN shares and either 28.5c or 0.038 HMC shares – basis Fridays close this effectively implies an offer price of $3.45-3.47 depending how the offer is taken up. At todays price its marginally cheaper to buy AVN but of course its price is open to vagaries of the market before the new larger entity commences trading on the ASX. There is no clear better alternative which makes sense as trading desks generally play the arbitrage on these deals.
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