Central Capital (CEH) and Yield Management Group have proposed a merger of the two companies. On Friday, CEH was up 0.50 to 1.75 on the news. CEH has some money in the bank and a TSE listing, but their main asset is their prior tax losses which can be used to reduce the taxes of any new owners.
What is the fair value of the CEH shares, assuming that the merger will take place as planned? In other words, should I buy, sell or hold? Any ideas or comments?
Here's a link to the news release:
newswire.ca
--Mike Merriam |