Comments on: Stock Thoughts: Pengrowth Energy Trust

By: The Corner Office Blog - An entrepreneurs thoughts on business, personal finance and investing. » Blog Archive » Update: Pengrowth Energy Trust

Sun, 27 Aug 2006 15:40:09 +0000

[...] Back at the end of July, I wrote about the acquisition of Esprit Energy by Pengrowth Energy Trust (PGH: chart, web). I also boasted about my impecable forsesight (ok, so I was more lucky than good, but I’ll take it) that PGH shares would fall due to the consolidation of their Class A shares with their Class B shares to form a single unit. [...]

By: Ed

Ed — Wed, 26 Jul 2006 22:13:56 +0000

I sure do like those CANROY’s. I like your idea to sit on the sidelines with PGH. Seems like the price might correct a little further as the units are combined tomorrow. ED

By: Grant

Grant — Wed, 26 Jul 2006 20:12:30 +0000

As the press release states:

“All Class A trust units for which an Election to Retain Class A Units and Declaration of Canadian Residency is not delivered to Computershare before 5:00 p.m. on July 25, 2006 will, without further act or formality, be automatically converted into Trust Units at 5:00 p.m. (Calgary time) on July 27, 2006.”

So the consolidation of the Class A trust units into the unitized “Trust Units” will take place at 5pm on the 27th. At that point, there is only one class of trust units.

As for what will happen to the PGH units in terms of price per share after the 27th, I don’t know, which is why I’m waiting to see how the PPS reacts to the consolidation.

By: sl

sl — Wed, 26 Jul 2006 20:03:43 +0000

What makes you think the consolidation will end on the 27th?

Just curious.