Trading at a big discount to the agreed LIO offer given LIO share price29 May 2026 15:41
What am I missing? This is going to be sold to LionTrust for 2.97m shares initial consideration.
2.97m x 307p (current LIO share price) = £9.1m vs current mcap of £7.4m ie 23% discount. Plus anything further from the additional consideration*.
I'm not really a merger arb guy but this seems like a chance for free money unless I'm missing something?
* Additional consideration largely dependent on outcome of EOT trust strategic review which results of which were announced today. I'm sure that a lot of investors will cash out, or shift to JPM Trust, but maybe 30% will stay with Devon/River/Liontrust in the open ended fund they are making, which means there could be maybe £0.5-1.0m extra to come to shareholders in additional consideration (out of a potential £2.4m or something).