CIP - an investment company on a 37% NAV discount...
Posted: May 27th, 2021, 1:41 pm
CIP is an investment company - like PRIM (see another thread here) though 5x the size.
CIP is an interesting one as over recent months they successfully rejected a "fishing" putative offer of a miserly 50p/share when the NAV was c75p!
The rejected suitor (Corp. Financiere Europeene) was left with an unmarketable 16.36% stake. What does it do - well, on 30th March it increased its stake, adding c418,000 shares to increase its stake up to 17.12% (9.413m shares).
So what next, will they return with a more sensible offer; or will they do a deal with CIP and convince them to buy back their stake at, say, 55p.
Would seem a sensible solution as it would of course be accretive to CIP's underlying NAV. The current 85.3p would rise to 95.1p
CIP shares recently traded slightly higher due to an increasing NAV following a couple of good investments (HSS & VTU) and a bid for one of their holdings (PHD).
Today the shares are 51p-53.7p, so on a 37% NAV discount.
They don’t pay a dividend; still, with the possibility that CFE might return with a more sensible offer; coupled with the likelihood that a 37% discount will attract new investors, CIP looks very good value.
CIP is an interesting one as over recent months they successfully rejected a "fishing" putative offer of a miserly 50p/share when the NAV was c75p!
The rejected suitor (Corp. Financiere Europeene) was left with an unmarketable 16.36% stake. What does it do - well, on 30th March it increased its stake, adding c418,000 shares to increase its stake up to 17.12% (9.413m shares).
So what next, will they return with a more sensible offer; or will they do a deal with CIP and convince them to buy back their stake at, say, 55p.
Would seem a sensible solution as it would of course be accretive to CIP's underlying NAV. The current 85.3p would rise to 95.1p
CIP shares recently traded slightly higher due to an increasing NAV following a couple of good investments (HSS & VTU) and a bid for one of their holdings (PHD).
Today the shares are 51p-53.7p, so on a 37% NAV discount.
They don’t pay a dividend; still, with the possibility that CFE might return with a more sensible offer; coupled with the likelihood that a 37% discount will attract new investors, CIP looks very good value.