Unusual for me to post 3 times in a day – but this one was too good to miss and I don’t want some guy on twitter beating me to it and claiming the credit.
Just been working the numbers on Tejoori and noticed something I thought I would share…
The recent RNS said a recent Arjan plot with a book value of $4.3m sold for $6.5m – a 48% uplift.
The remaining Arjan plots are in the books for $9.5m if one applies a similar uplift you get to $14.14m.
They hold cash of $3.5m and Bekon is listed as for sale at £3.35m.
What is interesting is the next bit – they have a receivable -valued at $3.1m in the Arjan Projects.This is note 7.1 in the accounts here.
On 26 October 2008, the Group entered into a contract to sell its interest in Lagoons plot 3, for USD 12.6 million of which USD 3.1 million was receivable from the acquirer at the time.
In September 2012, the acquirer of the plot signed an agreement with the Group whereby the acquirer delegated the Group to perform settlement with the main developer of Lagoons plots for replacing the Lagoons plot with an alternative plot of land.During the year ended 30 June 2013, the Group successfully replaced the Lagoons plots for alternative plots in the Arjan project located in Dubai, UAE. USD 0.6 million of the additional costs incurred on the exchange of plots was payable by the acquirer which has been added to the earlier receivable of USD 3.1 million. However, the acquirer has refused to settle the balance due to the Group. While the negotiations are ongoing to settle the dispute, no impairment has been recognised as the Group has not yet transferred the new plot of land in the Arjan project to the acquirer and holds it as collateral for the receivable.
1 thought on “Tejoori – Bit more Hidden Value Found – could still be a 4 Bagger”
[…] to this they have a receivable worth $3.7 in the books – possibly more (https://deepvalueinvestments.wordpress.com/2016/05/04/tejoori-bit-more-hidden-value-found-could-stil…😉 and land in the books for $9.5m but which if they are sold at a similar premium to next door plots […]