This thread is dedicated to special situations such as; company
spinoffs, special dividends, company selloffs, takeovers, etc.
As an example, here is a recent story on South China Industries,
company is selling off main assets and would have about $1.00 /share.
On this news, the company's shares jumped from .13 to .31, however it
is still far from its cash value. Will the cash be given out as a
special dividend?
South China Agrees To Sale Of 80 Percent Interest In Guilin Tire Factory
TORONTO, ONTARIO--South China Industries (Canada) Inc. ("South
China") has agreed to sell its 80 percent interest in the Guilin
Tire Factory to its joint venture partner, Guilin South Rubber
Group Corporation ("GSRGC") for $10 million US ($15.0 million
Can.) plus the cancellation of 11,954,000 multiple voting and
subordinate voting shares of the Company which are to be tendered
by GSRIC for cancellation. After cancellation of such shares,
15,653,817 shares will be outstanding which would put a value of
$0.96 (96 cents) per share on the transaction.
Another example is GSM.TSE, which is the target of a takeover for about $3.80 / share and .05 of a merged company called BRELSH. The
stock is currently just under $3.00. |
