08-03-2016, 09:33 AM
Ok, so there is obviously something that I'm not seeing here. So I'd be very greatful if someone could tell me what I'm missing.
As per their press release (http://ir.trinasolar.com/phoenix.zhtml?c...ID=2191453) they have entered into a definitive agreement to go private. Of course there will still be a vote but the way I see it, this deal is very likely to happen. The thing I don't get is... if they have offered $11.60 per ADS then why is Trina currently trading at around $10.40? I can see the price not jumping to exactly $11.60 because it will take some time for the merger to finish and for the owners to get their cash, however that can't explain for such a large difference.
I can buy now for $10.40 and early next year I'll receive $11.60. That would be a more than 10% gain over a roughly 6 month period of time... and with very little risk. So what is it that I'm missing?
As per their press release (http://ir.trinasolar.com/phoenix.zhtml?c...ID=2191453) they have entered into a definitive agreement to go private. Of course there will still be a vote but the way I see it, this deal is very likely to happen. The thing I don't get is... if they have offered $11.60 per ADS then why is Trina currently trading at around $10.40? I can see the price not jumping to exactly $11.60 because it will take some time for the merger to finish and for the owners to get their cash, however that can't explain for such a large difference.
I can buy now for $10.40 and early next year I'll receive $11.60. That would be a more than 10% gain over a roughly 6 month period of time... and with very little risk. So what is it that I'm missing?