News: APA sweetens Envestra bid , page-9

Hi folks:

It looks like ENV holders get both their 3.2c/ ENV share March/April distribution and the FULL 18.5c/APA share (or more) June/Aug distribution. Correct? (3.2c/ENV share is stated in ENV guidance. APA states that its June/Aug distribution will be at least 18.5c/sh.)

I ask because swapped or new shares sometimes get the next distribution pro rata, not in full. But I can't find any statement that the new APA shares (former ENV shares) will have a reduced distribution.

If ENV holders receive APA's full June distribution, why would anyone buy APA (long) when buying ENV has a known higher yield with the same result of owning APA shares during that time? Buying APA yields 3.55 cents (or more) per ENV share (18.5 cents/APA share) from now to August, whereas buying ENV yields 6.75 cents (or more) per ENV share (about 35.1 cents/APA share) during that time.

The only risks I can see are that (a) the deal doesn't go through (in which ENV shares might drop 5-10%) or (b) the deal is delayed past APA's June ex-div date.

One more thing: some HC posters reported on another company last year that they made low risk profits in some acquisitions by buying and selling each stock when there was a sufficient gap in their share price. I'm too risk averse and long-oriented (i.e. not a trader), but I do notice ENV and APA share prices diverge by 1% or more at times. Will be interesting to watch this show!

Your views are appreciated.