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Does MM think CIM will relist?

Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

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Does MM think CIM will relist?

Hi Edward, Thanks for your email, and your offer to help with my question, which is very much appreciated. As the reply MM published to my recent question on CIM in the “Ask James” Sat morning Questions Report didn’t really answer my question, I am going to ask it again in much clearer form: I hold some CIM shares which I bought nearer $30 than the $22 which Hochtief are asking. Is there any likelihood that Hochtief will re-list CIM after their purchase is finalised, which could mean that the price could move up from the present $22 (providing of course that Hochtief don’t compulsorily acquire my shares), or is my only option at this point to sell for $22 now and take my loss? Keep up the good work and sorry to hear that James is unwell. Regards

Answer

Hi Gil,

I’m afraid it looks like you will be crystallising a loss as the takeover price looks set at $22 and I cannot imagine why German construction group Hochtief would be considering relisting the business.  They have owned the bulk of it for many years and have waited for the opportune time to take out the rest. Thanks Gil – I’m back to near 100% and sorry my previous answer was not clearer. We pride our selves at MM on being clear in what our views are.

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CIMIC Group (CIM)
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