I received a tender offer to buy back my shares of Blackrock Health Sciences (BME). This is a CEF that currently trades at a -7.94% discount. I own it for the dividend but the NAV has generally increased over time as well. Current yield is 6.21% and I'm satisfied with this holding and intend to add to my position.
The tender offer is to buy back my shares at 98% of NAV. My first inclination is to accept the offer, which would yield a quick profit of a couple thousand dollars (compared to selling it today). I'm thinking that I could then repurchase those shares, hopefully at a discount greater than -2% and keep the profit.
What's the catch? I understand that I may not be able to repurchase the shares at the same -7.94% discount as today, but it seems likely that it will trade at a greater discount than -2%. Am I missing something?
Submitted July 27, 2024 at 05:51AM by Careful-One5190 https://ift.tt/Uw7c2yk
