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What to do with the titles of Cominar, Facebook and Amazon? Here are some recommendations from analysts likely to move prices in the near future. Note: the author may have a totally different opinion from that expressed
Cominar (CUF-UN, $ 11.61): an offer to buy to split the company into three pieces
This Sunday, a consortium led by the Quebec company Canderel announced the acquisition of the real estate investment fund Cominar for an amount of $ 5.7 billion.
Canderel will team up with FrontFourCapital Group (private), Artis real estate investment trust (AX.UN-T, $ 9.59) and Sandpiper Group (private) to purchase Cominar at a price of $ 11.75 per unit.
Artis will pay $ 214 million as part of the transaction, while Groupe Mach (private) will buy part of the office and commercial buildings for $ 1.5 billion.
Following the closing of the transaction, Cominar’s portfolio of 190 industrial buildings would be sold to the American company Blackstone.
Cominar will have to pay a termination fee of $ 55 million (representing approximately 2.6% of the value of the equity, before dilution, of the REIT) to the acquirer in certain circumstances, including in the event that the consortium does not not exercise its right to submit a proposal equivalent to a superior offer from another purchaser.
Conversely, the purchaser will have to pay Cominar $ 110 million in compensation if he waives the acquisition.
Analyst Frédéric Blondeau, of IA Capital Markets, believes that the takeover bid will go ahead. He recommends that holders of Cominar units approve the transaction and reinvest the money from the sale in Artis.
The meeting of Cominar unitholders to review the transaction is scheduled to take place on December 21 and the transaction is expected to be finalized during the first quarter of 2022.
Before the transaction was announced, Frédéric Blondeau had a recommendation to “hold” the stock and a one-year target price of $ 11.25.
Next page – Facebook (FB, US $ 328.69): Analyst modestly lowers forecasts
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