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%.
Q3 hedge fund letters, conference, scoops etc
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.
Article by Deep Value Investments Blog
