After my ARA "fixed deposit" has been redeemed, what remains is my original investment which I paid $1.00 to $1.32 a share for.
Although the offer of $1.78 would mean a 35% to 78% capital gain, I would be losing a very consistent and meaningful source of passive income.
At $1.78 a share, a 5c DPS gives a dividend yield of 2.8% which is still pretty decent considering the fact that ARA pay out only about half of their earnings as dividends.
As an investor for income, naturally, I would like to continue receiving dividends from companies such as ARA.
With an impressive full year 2016 performance, I am even more reluctant to let go of my investment in ARA now.
So, I have decided not to accept the offer.
See presentation slides: HERE.