Canadian billionaire Seymour Schulich, who has just increased his position in Pengrowth Energy Corp., now says he plans to take an even bigger stake in the battered energy company.
"We want more," Mr. Schulich said. "We want to be in a position to block any bids."
Mr. Schulich, co-founder of Franco-Nevada gold company, has been quickly building a position in Pengrowth. He announced that he had acquired a 14.7-per-cent stake in the company in March. He then boosted his investment to 15.7 per cent last Wednesday. Less than a week later, Mr. Schulich gobbled more shares on the open market, raising his stake to nearly 17 per cent. He did not say on Tuesday how much more he would like to acquire.
"This stock at this price is ridiculous. We think it is a $10 stock," he said.
Pengrowth shares surged after it became public that Mr. Schulich had acquired a minority position in the company. Pengrowth is now trading around $2 a share, double the price at the beginning of the year, although still a fraction of its $25 stock price in 2006. Story
Cara's shareholder setback
On the heels of its landmark acquisition of Quebec's St-Hubert restaurant chain, Cara Operations Ltd. has suffered a setback. At the bank's annual general meeting last week, almost one-third of subordinate shareholders withheld their votes for the company's chief executive officer and two other directors.
To lose 10 per cent of the vote might make people pay attention. To lose 30 per cent certainly raises eyebrows.
To the naked eye, the vote tallies suggest there's a major grievance. Maybe shareholders are angry about executive pay, considering two of the affected directors sit on the compensation committee. Possibly they're unhappy with some strategic decisions, considering the CEO was dinged.
There's likely another reason. Reviewing the voting recommendations from proxy advisers Institutional Shareholder Services and Glass Lewis, one suggested voting against the three affected directors for a structural reason: "Three of the six directors are either affiliated with the company or are insiders," ISS wrote. "This raises concerns about the objectivity and independence of the board and its ability to perform its proper oversight role. Story
Just another REIT IPO
The Americans who tried their luck taking a U.S. real estate company public in Canada are back to do it again.
After building HealthLease Properties REIT – which had mostly U.S. assets – as a Canadian real estate investment trust and selling it in 2014 for $1-billion, the backers behind it are now trying to take a new company public on the Toronto Stock Exchange: Mainstreet Health Investments Inc.
The company – run by Zeke Turner, Scott White, Scott Higgs, and Adlai Chester – already owns 11 seniors residences in the Chicago area. The goal is to raise $95-million (U.S.) to buy new properties in New York, Pennsylvania and Kansas. Mainstreet Health is looking to pay an annual dividend yield between 7 and 7.4 per cent.
The timing can't be a coincidence. Canadians' appetite for REITs were muted for nearly two years, which is why the deal is the first real estate IPO in almost a year. Automotive Properties REIT raised $75-million (Canadian) last summer, but the offering had to price the high end of its yield range, with the company agreeing to pay investors 8 per cent annually. Story
Whitecap, Husky reach deal
Whitecap Resources Ltd. is paying $595-million for a package of southwestern Saskatchewan oil assets from Husky Energy Inc., the latest in a series of deals it has down through the energy-sector downturn.
Whitecap also said it will issue $470-million shares to finance the deal, the latest of several sales by Husky.
Under the deal, Whitecap will pick up production of 11,600 barrels of oil a day on lands that come with further development opportunities, it said. Story
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