Altron has acquisition of Altech has now put 2 options on the table 1.accept a cash offer of R47.50 per share or convert to Altron preference shares at a conversation rate. Any ideas on which options will work out best since I am at a major loss on my portfolio.
But it is a pref share, that is not a bad deal. While Altech is badly run, Altron is actually quite a tightly run ship. The one brother is revered, while the other is hated. Under decent leadership, the Altech Crown Jewels (Autopage and Netstar) might actually be nice strategic assets. Ordinary shares, I might say take the cash, but a discounted pref share? (I assume the pref shares are being offered at a discount?)
Prefs more or less offered at market value. Been dropping last 2 yrs dragged down by Altech performance. Only way to regain some of the losses is to go with the pref option. Anyway, only paying part of the deal (50%)with the prefs, rest is cash depending on the uptake of the prefs. My understanding is that the institutionals are going for the pref option so expect 50/50 split if you request pref option. Agreed with skaap on mngmt and assets. I see potential so going for the pref option, therefore also saving some costs and getting some cash.
I think Coronation have sold most of them making a neat 20%+ profit probably bought before the announcement. Anyway, after more consideration, I have changed my mind and going for the cash. At 2.22 prefs for 1 ALT, the cost of 1pref= 2140. Trading at 1920 so +/-10% diffs and as Simon puts it, it is a different asset class.