Hello everybody! I would like to share some news about the recent acquisition of Student Transportation (STB.TO). Student Transportation will be acquired privately for $7.50 US per share which is about $9.60 in Canadian currency.
With 340 shares on hands, I will receive over $3000 in cash. My capital gain will be at least 50%, plus the dividend income I received over the past five years. STB paid a great monthly dividend which yielded on average 8%. I have mixed feelings about this deal because I will lose a great dividend payer.
I always was a buyer of the stock when it was trading below $6.00. Over the past five years I accumulated 340 shares. All of my STB shares will be exchanged for cash. The deal should be closed in a few months.
All proceeds will be reinvested. I don’t have any ideas yet about my next purchase, but I will be monitoring my existing positions for bargain prices.
If you have shares in STB, let me know what you plan to do next? Would you sell here or wait for a higher offer?
Congrats mate! I love buyouts. The last few years have been excellent for M&A. Do you think there would be a bidding war? If not I would sell. Use that money to generate additional capital gains.
ReplyDeleteHi DG! Thanks for stopping by! Yes, the buyouts are great because you're often rewarded with a good premium. In this case STB shareholders will received 27% premium. I doubt there will be a bidding war because it's not a popular company, or a go-to-name in the space. Anyway, that will be a nice capital to play with.
DeleteI held stb until yesterday. I decided that there is unlikely to be a higher price and with some pullbacks lately I feel I can better deploy the money now than the unknown of a few months away. I have a position already in DR but it has pulled back and thinking about increasing it. We will see what the markets do this week. Also interested in Northview apt reit.
ReplyDeleteThanks for your comments. Good call on STB sale. I don't think there will be a higher bid for it. If you got out at around $9.65 then it's a pretty good deal. DR was a great buy below $13 which I took advantage of. Now it's a bit more expensive. NVU looks expensive on the chart compared to most REITs stocks. You should do well with any of the two you picks. Let me know which stock you decide to buy. Take care!
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