Rasmala – Exiting,c25% loss last tranche, up 17% overall

Posted on by rjmahan

Exited my position in Rasmala. Took the usual liquidity based hit.

They have decided that instead of delisting in the UK and relisting in Dubai (which I was OK with) they will simply delist.  They have a tender offer for 20% of their shares at $1.50 a share, presumably to let UK investors out. 15% of shares wont be tendered, but that still leaves the remaining 85%.

The delisting vote needs 75% approval from shareholders – I am not sure they will get it. Even if they don’t companies can delist via the back door so I dont want to be in this.

Where a management decides it doesnt want to be listed I want to get out.

It wasnt the biggest position anymore and I started buying at 80p (my profit figures are skewed as I bought a lot before the last tender offer at about 140 then tendered them at 150).  Still a little disappointing as the NAV is triple the market cap, so not something I ideally want to sell.

In theory holding a private company should be OK but in practice in all the shares where I have had a delisting (Renn universal growth, Red Hot Media) my money seems to be locked away for a very long time and might well not be coming back.  Prepared to take the hit here to get out.

I’m having a bit of a bad year – down c13%, and what is worse I am struggling for ideas.  Portfolio is now 75% cash / gold / silver (mostly cash). Possibly need to try looking into different things – although (probably) late in a bull market was never going to be the best time for me.

Published by rjmahan

10 thoughts on “Rasmala – Exiting,c25% loss last tranche, up 17% overall”

  2. Hi Rob- IIP worth another look imo. The PSA/Gateway deal looks quite likely to complete over the next few weeks given the change to the extension RNS today. They have previously moved on a month at a time but todays RNS has just pushed the dates forward to 7/12/18, which indicates something to me at least. IIP will be worth substantial more post deal of course.

    1. Hi Steve, I still hold a touch of IIP though I sold down a bit. Am not inspired by all long delays / the failure of the wind farm sale which may impact the financing. Might regret it but its a little too risky for me.

      1. Fair enough Rob- The PSA/Gateway deal was always going to take 6 months or so to complete given the structure and the Indian Energy deal was pretty minor in the scheme of things but I agree its high risk so if that does suit you re your % holding, you are best off not adding. I only hold a small % of my portfolio here too but have added recently. Best wishes. Steve

    1. They should get their final E14.3m at the end of the month, which will take net cash up to E 53m, the German sub looks like a management buyout but nothing much for PVCS from there, so I guess the hope is that they dont blow it all on some crazy scheme and return all or most of the cash? The mkt cap of £38m seems about right for now unless you see some value in the shell.

  4. I see a little value in the German ops, but how I look at it is – if all goes to plan you get a 25% return for holding from now until (perhaps) early next year.

    Bit of risk they will come up with a crazy scheme and maybe value in the shell – but that wont be much…

    Just think it is very,very likely to come off…

    1. Good luck Rob- I hope they announce a cash return at the end of the month for you. It does seem the sensible option and as you say, you might make a nice return from here. I cant see huge expenses in closing PVCS down.

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