Tejoori 37c tender offer – don’t accept, its worth almost double…

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.

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

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…


12 thoughts on “Tejoori 37c tender offer – don’t accept, its worth almost double…”

  1. Hi Scott – I think best option would be to change investment mandate to prevent any more investment / secure an orderly distribution of the cash. Happy to join in any activity in accordance with this aim. Unfortunately I am poor so dont have enough shares to make this happen….

  2. Guys, I had a call with Southey Capital just a few hours back. We were talking about increasing our stake to eventually push for a resolution but it seems like they just went behind my back. Since this is the case, I guess there is only one option left.

    I would recommend all shareholders NOT to accept the tender and come together to ask the management to dissolve the company.

    If you are interested to join my activist, please email me at scott.lee@locuscapital.co

  3. I’d support Locus Capital but I’ve a really small holding. Only 25,000 shares. I have previously emailed the company asking why they are so vague about everything from continuing the listing to the amount to cash they will return. I like the fact they take very small salaries but everything proceeds at a glacial pace and they have left their shareholders completely in the dark

    1. Doug, thanks, i will note this down. Mind if you can fill in the form for your contact details please? As this point the most important thing is getting enough shares for a vote.

  4. Rob, thanks for your feedback. Changing of investment mandate would require a shareholder vote. I would imagine that if it comes down to the wire, we can simply vote for a resolution to dissolve the company. Additionally, i think a discussion around the logistics of shareholder voting is necessary. I will provide more details at a later stage.

    At this point, if there are any more shareholders, please fill in your details and in the google form ( https://goo.gl/forms/QGj6pTJrC05oU1b62 ) to allow me manage this more efficiently.

    I will then post updates whenever there is any development.

  5. Scott you seem to not understand disclosure requirements in London pertaining to forming groups, you should be cautious with the approach you are using!

  6. Marvin, the requirements are specifically from the UK Take Over rules which are not applicable to Tejoori. This is stated in their admission document. Further, the articles did mention that if I have control of shares of more than 3%, I will need to disclose. However, I do not have the rights as no one has given or is expected to be give me their proxies so I nor the people that are in this are subjected to the rules. Rest assured I am walking through this very carefully and happy to chat with there is a specific rule you think we might be in violation of.

    1. I have added a touch… If you can buy at 50c and sell at 60 ish its still a very good deal – I trust management. 20% of portfolio now, but I wont put more in….

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s