Just got a notice from my broker – Hargreaves Lansdown that there has been a 0.37c tender offer for all of Tejoori from Southey Capital Ltd.

 

Get The Timeless Reading eBook in PDF

Get the entire 10-part series on Timeless Reading in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues.

We respect your email privacy

There havent been any RNS’s about this so many in the market may not yet know.

Tejoori
OpenClipart-Vectors / Pixabay

I have had a think about this and I won’t be accepting.

I recon fair value of Tejoori is probably anything from 0.64-0.76c per share.  All cash or wakala deposit (almost as good as cash).  I am not prepared to accept half what Tejoori is worth to get money back now.

There company is saying it is considering delisting from AIM and returning “a proportion of ” the cash.  I would suggest that the proportion is likely to be over 50% so you should not accept this offer.

There is also a looming threat from AIM rules – by Febuary 2018 if the company hasn’t invested again it will be suspended and ultimately delisted.

Management are taking their time to return cash but I still think it will happen.  I am a little bit concerned they will continue trying to invest in a typically inept fashion.  This offer is likely to speed any return of cash up, giving another reason not to tender. I doubt management would enjoy having Southey capital as a large shareholder…

Patience is what is required here…

Article by Deep Value Investments