Weyerhaeuser Co. Splitoff Presents Interesting Odd Lot Opportunity (~$330)

Posted on May 14, 2014 by admin
  • Company: Weyerhaeuser Co.
  • Ticker: WY
  • Size of Action: ~$2.2bn
  • Type of Transaction: split-off exchange offer and "reverse morris trust" merger
  • Current Price: $30.35
  • Exchange Price: WY shareholders expected to receive $1.11 of TPH  per $1.00 of WY
  • Potential Gain (%): ~11% (exchange rate may vary, based on VWAP of both stocks)
  • Expiration: 12:00 Midnight on June 30, 2014
  • Tender Limit (Shares): 99
  • Max Investment ($): ~$3,000
  • Max Gain ($): ~$330
  • Sec Filing: 5/22/14 PR Link, Link to Exchange Website, Splitoff PR Link, Registration Statement
  • Transaction: WY shareholders will have the option to exchange their WY shares for shares of its subsidiary, WRECO. These shares will then immediately be converted to TPH shares in a "reverse morris trust" merger. 100k WRECO shares will be issued. Although the exact exchange ratio will vary based on how WY and TPH trade, the company expects WY shareholders that tender for WRECO shares to receive $1.11 of TPH shares for every $1.00 of WY tendered.
  • Odd Lots: An exception to proration can apply to shareholders who beneficially own “odd-lots”, that is, fewer than 100 Weyerhaeuser common shares. Beneficial holders of fewer than 100 Weyerhaeuser common shares who validly tender all of their shares and request preferential treatment as described in “This Exchange Offer—Terms of this Exchange Offer—Proration; Tenders for Exchange by Holders of Fewer than 100 Weyerhaeuser Common Shares” will not be subject to proration.
  • All information contained on or available through this Web Site (“the Content”) is for general information purposes only and does not constitute any investment advice.
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