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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…

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